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Presented by City of Flagstaff Flexible Spending Account Overview

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City of Flagstaff Flexible Spending Account Overview. Presented by. Who is ASIFlex?. Flexible Spending Account Administrator for over 20 years Located in Columbia, MO Customer Service is our Priority! Toll-free phone number 800-659-3035 is always answered by a live customer service rep - PowerPoint PPT Presentation

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Presented byCity of Flagstaff

Flexible Spending Account Overview

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Who is ASIFlex?Who is ASIFlex?

• Flexible Spending Account Administrator for over 20 years

• Located in Columbia, MO

• Customer Service is our Priority!

• Toll-free phone number 800-659-3035 is always answered by a live customer service rep

• On average, one business day turn around time on claims processing

• Toll-free fax for claims submission, 877-879-9038

• Online claims submission portal, secure message center, account detail and more at: http://my.asiflex.com

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Pre-Tax Spending AccountsPre-Tax Spending Accounts

• Health Care Flexible Spending Account (HCFSA)– Pre-tax money for out-of-pocket medical expenses

– Includes deductibles, co-pays, dental work, etc.

– Expenses can be for you, your spouse or any of your tax dependents (regardless of whose insurance the dependent is on)

• Dependent Care Flexible Spending Account (DCFSA)

– Reimbursement for qualified care of a tax dependent

– Reimbursement for childcare expenses

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How much can you save?How much can you save?

• Most people save at least 25% on each dollar they contribute

Example:

You could save at least $125 on a $500 pair of glasses by using pre-tax dollars!

• Check out the Tax Savings Calculator at www.asiflex.com

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How do Flexible Spending Accounts work?How do Flexible Spending Accounts work?

• First, you decide how much money you want to set aside into your Flexible Spending Account (FSA)

• Make this decision during Open Enrollment or when you are first eligible to enroll

• Your annual election is deducted evenly from each paycheck over the course of the year before income and FICA taxes are assessed

• This means more money in your pocket!!

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How do you access your money?How do you access your money?

• Incur an eligible expense (co-pay, prescription, chiropractic adjustment, etc.)

• Submit claims with supporting documentation for reimbursement

• Complete claims typically processed within 1-2 days of receipt

• Use your FSA debit card to pay for your out-of-pocket medical expenses

• The debit card is available only for the health care FSA. Dependent Care FSA expenses must be submitted to ASIFlex for reimbursement.

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Health Care Flexible Spending AccountHealth Care Flexible Spending Account

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Commonly Claimed ExpensesCommonly Claimed Expenses

Glasses Dental Work Lab Work

Medical imaging Chiropractic Care Prescriptions

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REGULATORY CHANGEREGULATORY CHANGE

• Over-the-Counter Drugs/Meds– Eligible but only with a prescription– Effective for items purchased 1/1/2011 forward– Examples of items that will now require a

prescription for reimbursement include:

• For a complete list go to www.asiflex.com

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How much to set asideHow much to set aside

• Maximum of up to $2,500 per plan year– If your spouse works for the City (or another employer

offering this benefit), you may each set aside up to the maximum annual contribution

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• Deducted over the course of the plan year

• Available to you in full on July 1

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Your funds are…Your funds are…

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Easy ReimbursementEasy Reimbursement

• ASIFlex can issue direct deposits to a checking or savings account

• You can receive e-mail letting you know when a reimbursement has come through

• FSA Debit Card to pay for eligible out-of-pocket health care expenses.

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FSA Debit CardFSA Debit Card

• Use the debit card for out-of-pocket medical expenses only

• Card use is restricted to use at:

– Known health care providers

– Many (but not all) retail outlets; some are:

– Wal-Mart– Sam’s Club– Walgreen’s– Safeway

– Rite Aid– Target– Fred Meyer– Costco

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FSA Debit Card FSA Debit Card (continued)(continued)

Doesn’t necessarily eliminate paperwork

− Every transaction must be substantiated somehow

− Some substantiation can be done electronically

− Remaining purchases prompt a request for documentation

− Always keep your documentation even if ASIFlex does not ask for it

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Dependent CareDependent CareFlexible Spending AccountFlexible Spending Account

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DCFSADCFSA

• Provides a tax break on child or other dependent care expenses incurred while:– You go to work (single parent)

– You and your spouse go to work

– You go to work and your spouse:

– Looks for work

– Pursues an educational opportunity full-time

– Is the dependent who needs the care

• Other expenses are not eligibleFor example, getting a babysitter for a Friday night date is not an eligible expense

Or

Or

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Eligible DependentsEligible Dependents

• Children under the age of 13*

• Older dependents unable to care for themselves– Who live in your home at least 8 hours per day

– Must meet IRS income guideline

*You or your spouse must be custodial parent with over 50% custody if divorced

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Eligible ExpensesEligible Expenses

• Day care services

• General purpose day camps

• Babysitters

• Pre-school

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Ineligible Expenses IncludeIneligible Expenses Include

• Cost of food and transportation if itemized

• Educational expenses– Includes private schools

• Overnight camps

• Payments to your spouse or any other dependent

• Payments to your child under 19, even if he or she is not your dependent

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Deduction AmountDeduction Amount

Family maximum of $5,000/year

This is an IRS maximum per household

• Deposit directly into your bank account• Receive notice of deposit via e-mail

Receiving PaymentReceiving Payment

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Important Points to RememberImportant Points to Remember

Regarding both Health Care & Dependent Care FSA

• Debit card is not available for DCAP expenses

• Employees who wish to continue to participate in either HCFSA or DCFSA must enroll every year, even if they want to set aside the same amounts

• Election is generally fixed for the entire plan year

• Unused funds will go back to the plan administrator– Use it or lose it by the deadline

– Start small if you are unsure of how much you will actually spend

– Keeping track of your account is very easy

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ResourcesResources

www.asiflex.com

E-mail [email protected]

Call 1-800-659-3035