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Flexible Spending Accounts (FSA)
A Flexible Spending Account (FSA) can help you save money on eligible healthcare and dependent care out-of-pocket expenses that you and your family incur during the calendar year. How the FSAs work is, you contribute funds pre-tax, up to the IRS maximum allowed limit, thereby reducing your taxable income, and then you can use those tax-free funds to pay for eligible healthcare and dependent care expenses for yourself, your spouse and eligible dependents. Simply present your Lifetime Benefit Solutions issued Health Spending Card for the purchase of eligible services and goods. Using the debit card allows you to directly tap into your FSA contributions, meaning better cash flow for you and eliminating the need to submit claims and wait for reimbursement. Note, some expenses you incur may require you to submit a receipt for substantiation. You can easily manage your account(s) online or via Lifetime Benefit Solutions’ mobile app.
For those that enroll in Operation Smile’s High Deductible Health Plan (HDHP) and Health Savings Account (HSA), a Limited Purpose FSA is available to offer an additional option for employees to manage their health care costs.
Eligible Expenses* and Guidelines *This is only an example of eligible expenses.
Healthcare Flexible Spending Account | Dependent Care Flexible Spending Account |
|---|---|
| $3,300 annual maximum | $5,000 annual maximum |
| Medical plan office visit copays, deductibles and coinsurance | Used for dependent day care expenses while you and your spouse work, look for work or attend school full-time |
| Certain over the counter (OTC) items prescribed by your provider (prescription required) | Dependents include children under age 13 or dependents that are physically or mentally unable to care for themselves |
| Dental plan copays, deductibles and coinsurance | Can only be reimbursed up to what you have had payroll deducted (pay as you go) |
| Orthodontia expenses | Expenses must be incurred by March 15th of the following year and submitted for reimbursement by March 31st of the following year |
| Vision care expenses including contacts, glasses and LASIK surgery | Limited Purpose Flexible Spending AccountNote, HDHP and HSA enrollment required to participate. |
| Expenses can be for you or anyone you claim as a dependent on your Federal tax return** | $3,300 annual maximum |
| Your entire election is available immediately regardless of actual payroll deduction amounts | Covers qualifying dental, vision, and preventive care expenses |
| Carry over up to $640 for the following calendar year | Can only be reimbursed up to what you have had payroll deducted (pay as you go) |
| Expenses must be incurred by December 31st and submitted for reimbursement by March 31st of the following year | Expenses must be incurred by March 15th of the following year and submitted for reimbursement by March 31st of the following year |
How it works
- Estimate your expenses and make an annual election for the accounts that apply to you.
- Your annual election is calculated on a per pay period basis and deducted from your paycheck and deposited into your personal account. Payroll deductions begin from the effective date of your election and continue through the end of the calendar year.
- A Benefit Resource debit card will be issued to all participants.
- When you incur expenses throughout the year, present your debit card for payment.
- Eligible expenses are only reimbursable if they occur on or after the date of benefit eligibility.
How it works Filing Claims and the Reimbursement Process
- Keep all receipts. The IRS requires documentation for many expenses to confirm they are eligible under the plan.
- Use your debit card at the time of service or submit your receipts with a completed reimbursement claim form. Some debit card transactions may still require a receipt.
For more information on FSAs, including available balance, savings calculator,
expense planning worksheets, reimbursement claim forms, and IRS publications, visit www.lifetimebenefitsolutions.com or call their customer service line at (800) 327-7130. You can even download their Mobile App to view your dashboard and manage claims.
