Transcript Title of Presentation - Welcome

Understanding Flexible Spending
Accounts
An educational presentation from WageWorks, Inc.
© 2014 WageWorks, Inc. All rights reserved.
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What is an FSA
An IRS-approved, tax-free account that
saves on:
 Out-of-pocket medical and dependent care
expenses
 Federal and state income tax
 Social Security taxes
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Types of Flexible Spending Accounts
• Medical Expense FSA  Dependent Care FSA
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FSA Contribution Amounts
Medical Expense FSA
• $240 Annually minimum ($10 per pay)
• $2,500 Annually maximum
Dependent Care FSA
• $5,000 maximum
(Depending on Tax Filing Status)
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Medical FSA
• Elect pre-tax dollars to pay for eligible Medical
expenses:
 Medical
 Dental
 Vision
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Medical Expense FSA
Eligible Expenses:
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Co-pays and deductibles
Prescription drugs/medications
Dental/orthodontia care
Glasses / Lasik / Contacts/ Solution
Medical Equipment
Drug & Alcohol Treatment
Hearing aids
Mileage to-and-from doctor appointments
See Wage Works Complete list
Ineligible Expenses:
Insurance
premiums
Non-prescription OTC items
Cosmetic procedures
Personal hygiene products
Diet products/food
Non-prescription glasses
See complete ineligible list
Please note: OTC drugs/medications require a prescription or Letter of Medical Necessity to be eligible for FSA reimbursement .
© 2014 WageWorks, Inc. All rights reserved.
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WHEN ARE MY FUNDS AVAILABLE?
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The total amount of your Medical FSA annual contribution is
available to you the first day of your effective date. The funds are
advanced to you upfront.
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NOTE: Dependent Care FSA funds are available only as they
are deducted from your paychecks (money-in, money-out).
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Funds cannot crossover between each FSA type
(i.e., Medical FSA funds cannot be used for Dependent Care
expenses.)
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Dependent Care Flexible Spending Account
Examples of DFSA eligible expenses:
• Day care expenses
• Summer camps
• Adult day care, etc.
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Qualifications:
 Dependent care for children under age 13
 Dependent who is physically or mentally
incapable of self-care including elderly
parents.
 Your daycare provider must claim your
payments as income and pay tax
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Forfeiture – “Use It or Lose It”
Use It or Lose It” - FSA balances do NOT rollover!
You must spend all the money in your account by the end of the Plan year/Grace period,
or your remaining balance will be forfeited. This is an IRS Rule. The Plan Year is April 1
to March 31.
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TIPS:
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Be conservative. Set aside only dollars you will actually use.
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Access your account to check balance frequently
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Grace Period runs for up to 2 ½ months after the plan year ends (June 14th)
Medical Expense Reimbursement ONLY
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Run Out Period ends June 30th.
©2014 WageWorks Inc. All rights reserved.
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Contact Information:
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Wage Works www.wageworks com
Customer Service # 1-877-924-3967
www.wageworks.com
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