Flexible Spending Accounts - Frequently Asked Questions for Plan Year 2014
How do I determine how much money to contribute to a Flexible Spending Account?
Carefully estimate what you will spend on eligible medical care and/or dependent care expenses during the year. If you do not use the full amount during the plan year, you lose the funds remaining in your account. To help you, a tax savings illustrations and a medical expense worksheet are available on the right-hand side of this page.
Does it cost anything to participate in the Flexible Spending Account program?
Yes. There is an administration fee of $1.85 that is withheld biweekly from your paycheck. This deduction is also treated as pre-tax (just like your account contributions). This fee is charged to you for each account in which you enroll.
If Social Security is deducted from my pay check, will my Social Security Benefits be affected if I enroll in the Flexible Spending Account(s)?
Since your Social Security Benefits are determined primarily by your top 35 years’ average earnings, the reduction in reported income on your W-2 will only slightly impact the determination of your benefits.
Can I participate in my employer’s Medical Care Spending Account if I participate in or have a Health Savings Account (HSA)?
No. If you participate in or have a Health Savings Account you are not allowed to also to participate in the Medical Care Spending Account. That would be considered ‘double-dipping’.
What types of medical expenses are eligible to be reimbursed from my Medical Care Savings Account?
Many out-of-pocket medical, dental & vision expenses that you pay for yourself, your legal spouse and dependent children are elgibile for reimbursement. For a list of some of the most common items see "Allowable Medical Expenses" (under the General Information section).
Can I be reimbursed for insurance premiums from my Medical Care Spending Account?
No. The IRS, who creates the rules that govern the flexible spending accounts, does not allow for reimbursement of insurance premiums. (Note, for most members, insurance premiums are already withheld on a pre-tax basis.)
Can I be reimbursed for items purchased over-the-counter from my Medical Care Spending Account?
Many items purchased over-the-counter are elgibile for reimbursement however some require a prescription and a Medical Necessity Letter.
How do I submit a request for reimbursement from my account?
You must complete a Reimbursement Request Form, attach a receipt or other proof of expense, sign and date the form. The form should be sent to H R Support & Consulting Services whose mailing address is printed on the reimbursement request form. Each time you submit a reimbursement request a new form and envelope will be provided with your reimbursement check.
Where will my reimbursement check be mailed?
Your reimbursement check will be mailed to the address that you provide when enrolling in the plan. If you have a name or address change, please notify HR Support & Consulting by calling toll free 1-866-655-5397.
May I submit 2013 expenses for reimbursement from my 2014 account?
You may not submit expenses incurred prior to January 1, 2014. Only expenses incurred on or after January 1, 2014 are eligible for reimbursement during this plan year.
When must my request for reimbursement be received in order to be included in the next scheduled check run?
Your Reimbursement Request Form must be received no later than noon, Friday to be included in the following Thursday mailing. When mailing your request for reimbursement please assume the postal service will take two to four days to deliver your request to HR Support & Consulting. You may fax your reimbursement form to (207) 655-6636.
Why must I sign and submit a Reimbursement Request Form each time I want to be reimbursed?
Federal regulations for section 125/129 plans require third party substantiation that an expense has been incurred. Your signature on each form confirms that you are not receiving reimbursement for those expenses from any other source.
Is there a minimum reimbursement amount?
The minimum is $20. If you submit a request for reimbursement for expenses less than $20, payment will be delayed until we have received additional requests so that the total equals or exceeds $20. At the end of your plan’s 90 day run out period, all eligible requests for reimbursements will be paid even if they total less than $20.
If I am out on Family Medical Leave, what will happen to my spending account(s)?
H R Support & Consulting Services staff works closely with your benefits office to handle these cases. Generally, deductions are not made while you are on FMLA leave and have stopped receiving payroll checks. Claims incurred during that period are not eligible for reimbursement. However, you may submit claims incurred and paid before you went on leave and after, if you re-enter the plan. Catch up options are also available.
How long after the end of the plan year do I have to submit expenses for reimbursement?
You may submit requests for reimbursement 90 days following the end of the plan year; this is known as the "run out period." This plan year you will have until March 31, 2015 to submit claims incurred between January 1, 2014 and December 31, 2014.
H R Support & Consulting Services
(207) 655-5396 or 1-866-655-5397