Flexible Spending Account Program FAQ'S
- Where can I find out what is a reimbursable expense?
- How do I get my money back from this account?
- What is the maximum I can contribute?
- Who is a qualifying dependent under the Dependent Care Reimbursement Account?
- What is the minimum I can contribute?
- When and how do I sign up?
- When can I make changes to my FSA elections?
- Is it more beneficial for me to participate in the Flexible Spending Account Dependent Care Reimbursement plan or to take the Child Care Credit on my Federal Income Tax return?
- Are there any restrictions if my spouse also contributes through his/her employer's plan?
- Was there a recent change that allows reimbursement for some over-the-counter drugs and medicines?
1. Where can I find out what is a reimbursable expense?
- The Human Resources FSA web page has a list
- You may also contact ASI at www.asiflex.com or by phone at 1-800-659-3035.
2. How do I get my money back from this account?
You fill out a claim form (PDF) and submit your receipt(s) directly to ASI. ASI will process your claim within 24 business hours of receiving it and send you a check by U.S. mail, or, at your request, process a direct deposit to your bank account (savings or checking).
|Mail claim forms to:||ASI|
| ||P.O. Box 6044|
| ||Columbia, MO 65205-6044|
3. What is the maximum I can contribute?
The Health Care Reimbursement Account maximum is $5,000. The Dependent Care Reimbursement Account maximum is $5,000 per family, per plan year. ($2,500 if married filing separate Federal Income Tax returns.)
4. Who is a qualifying dependent under the Dependent Care Reimbursement Account?
Qualifying Person Test for Dependent Care
Your child and dependent care expenses must be for the care of one or more qualifying persons.
A qualifying person is:
- your dependent who was under age 13 when the care was provided and whom you can claim an exemption on your Federal Income Tax return,
- your spouse who was physically or mentally not able to care for himself or herself*, or
- your dependent who was physically or mentally not able to care for himself or herself and whom you can claim as an exemption (or could claim as an exemption except the person had $2,900 or more of gross income).
*Physically or mentally not able to care for oneself. Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able to care for themselves. Also, persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care for themselves.
5. What is the minimum I may contribute?
There is no minimum contribution.
6. When and how do I enroll?
Newly hired benefits eligible employees have 30 days to enroll from their date of hire.
Annual Open Enrollment for this plan is held during the month of November. Employees wishing to participate in the next plan year MUST enroll during the annual open enrollment.
Enrollment, whether during your initial new hire enrollment period or during the annual open enrollment, is performed by enrolling on Employee Link.
7. When may I make changes to my FSA elections?
You may change benefits during open enrollment. Other than during an open enrollment period, generally, you are not able to change your election during the plan year. However, you might be able to make a change under one of the following circumstances referred to as Qualified Life Event changes:
- your marital status changes,
- your number of dependents change,
- one of your dependents satisfies or ceases to satisfy the requirements for coverage under the Medical Reimbursement plan for unmarried dependents due to attainment of age, student status, or any similar circumstances,
- if you, your spouse or qualified dependent experience a change in employment status that affects eligibility under this plan or you terminate or take a leave of absence (must be at least a 31 day break in employment status to qualify as a change in status)
- you change your Dependent Care provider, or
- you go on Family Medical Leave.
The change in status must result in a gain or loss of eligibility for coverage under this plan or a plan maintained by your spouse's employer or one of your dependent's employers and your election modification must correspond with that gain or loss of coverage. To apply for a benefit change under the FSA plan, you must apply for the change within 31 days of the event. Contact Human Resources for applicable forms. For additional information about qualified life event changes, refer to the applicable Summary Plan Document on the Human Resources FSA web page.
8. Is it more beneficial for me to participate in the Flexible Spending Account Dependent Care Reimbursement plan or to take the Child Care Credit on my Federal Income Tax return?
You may receive a tax break on your expenses, but you must choose whether to use the Child Care Credit or the FSA. The IRS will not allow you to receive two tax breaks on the same expenses.
You may claim a Child Care Credit on your tax return equal to your dependent care expenses (up to $6,000 per year for two or more dependents or $3,000 per year for one dependent) multiplied by a percentage. The percentage decreases from a high of 35% to a low of 20% as your household adjusted gross income increases.
The Dependent Care FSA is limited to $5,000 per year (for you and your spouse together), $2,500 if married filing separately, for any number of dependents. You will experience "tax savings" throughout the year with every paycheck you receive. If you are subject to the lowest federal tax rate, state taxes and Social Security taxes you will save around 27% of expenses through the Dependent Care FSA. If you pay a higher federal rate, you will receive an even higher tax break through the Dependent Care FSA.
Generally those employees with a combined income over $30,000 or who spend more than $3,000 on care for only one qualifying child will save more through the Dependent Care FSA. Please contact your tax advisor if you have questions about which is best for you.
9. Are there any restrictions if my spouse also contributes through his/her employer's plan?
The reimbursement limit for an FSA Health Care Plan is established by each employer, so you may each contribute an amount up to your respective employer's plan limit. However, you may only claim reimbursement of each expense from one plan (not the same expense under both plans).
The FSA Dependent Care Plan maximum limit is established by the IRS; therefore, you and your spouse may together elect a maximum of $5,000 per plan year for this plan.
10. Was there a recent change that allows reimbursement for some over-the-counter drugs and medicines?
In September 2003, the IRS expanded eligible reimbursable Health Care
FSA expenses to include qualified over-the-counter drugs and medicines
purchased to treat an existing or imminent medical condition for all
purchases made starting at the beginning of the 2003 plan year. Click
here for more details.