Navigate Benefit Information by Year:
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 Health Savings Account (HSA), a Limited Purpose FSA is now 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 |
|---|---|
| $3,400 annual maximum contribution limit | $7,500 annual maximum contribution limit |
Use to pay for eligible healthcare expenses*, including:
| Use to pay for dependent care expenses while you and your spouse work, look for work or attend school full-time |
| Dependents include children under age 13, or dependents of any age that are physically or mentally unable to care for themselves | |
| Funds are available as you contribute them; can only be reimbursed up to what you have had payroll deducted | |
| Additional 2½ month Grace Period after the plan year to incur eligible expenses, followed by a 90-day run-out period to submit claims for reimbursement | |
Limited Purpose Flexible Spending Account Note, HSA enrollment required to participate |
|
| Expenses can be for you or anyone you claim as a dependent on your Federal tax return | $3,400 annual maximum contribution limit |
| Your entire contribution is available the first day of the plan year. | Use to pay for eligible dental and vision expenses |
| Carryover up to $680 of unused funds to the next plan year, else lose unused funds | Your entire contribution is available the first day of the plan year. |
| 90-day run-out period, following the end of the plan year, to submit claims for reimbursement | Carryover up to $680 of unused funds to the next plan year, else lose unused funds |
| Cannot have a Healthcare FSA and contribute to an HSA; would need to participate in the Limited Purpose FSA | 90-day run-out period, following the end of the plan year, to submit claims for reimbursement |
Using Your Flexible Spending Account (FSA)
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.
- An LBS Health Spending 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.
Filing Claims and Reimbursement
- 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.