Flexible Spending Accounts
A Flexible Spending Account (FSA) is an IRS tax-favored account you can use to pay for your pharmacy, dental, vision and approved Over the Counter expenses not covered by your insurance or any other plan. A FSA can also reimburse eligible health claims if you have exhausted your County-funded Health Reimbursement Account (HRA). Please see new rules and limitations in your HRS & FSA booklet or online at www.wageworks.com
Flexible Spending Accounts feature:
IRS approved reimbursement of eligible expenses tax-free
Savings on income and Social Security taxes
Under current federal tax law, unless the person qualifies as a dependent as defined by the IRS, expenses for that dependent cannot be claimed. Therefore, expenses for domestic partners, dependents of a domestic partner as well as Over Age dependents age 26-30 cannot be reimbursed under a spending account.
USE IT OR LOSE IT RULE
FSA accounts are subject to the IRS “Lose it or use it rule.” Unreimbursed amounts left in the Account cannot be returned to you. Claims must be incurred prior to December 31, 2013, and submitted to WageWorks by March 31, 2014. Under IRS regulations, unclaimed amounts are forfeited. For this reason we encourage you to be conservative in your estimates and only consider expenses you will incur in 2013.
TYPES OF FSAs
Expenses not covered by your insurance plan may be eligible for reimbursement using your Medical Expense Account FSA, including but not limited to:
• Pharmacy copays
• Some over-the-counter drugs
• Eyeglasses and contacts
• Dental expenses
Dependent care expenses, whether for a child or an elder, include any expenses that allows you to work, such as:
• Daycare services (under 13 or adult)
• In-home care
• Nursery and pre-school
• Summer day camps
For plan details and rules, please visit WageWorks.
*NOTICE* Employees who enroll in one of the County's CDH plans: If you enroll in the FSA Medical Expense Account, all covered medical expenses for copays, co-insurance and deductibles will automatically be deducted from your Health Reimbursement Account (HRA) first. After the HRA balance is exhausted, remaining CDH expenses can be reimbursed from your FSA. If enrolled in both an FSA and HRA, all claims require an Explanation of Benefits (EOB) or itemized bill/receipt from the health carrier, whether it is for a covered benefit or not. Pharmacy copays can also be reimbursed from your HRA once you have exhausted your FSA.
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