Flexible Spending Accounts (FSAs) are arrangements that allow participants to pay for qualified health and dependent care expenses on a pre-tax basis. It is simply a way to pay for anticipated expenses while reducing the amount you pay in Federal Income Taxes.
Who is eligible?
All regular full-time and regular part-time TAC employees are eligible to participate. You will be given the option of participating in the FSA plan prior to the beginning of each calendar year.
How does it work?
After electing to participate for the coming year, participants specify the amount of pre-tax salary that they wish to contribute based upon estimated expenses for the year in qualified health and dependent care expenses. This amount is then deducted from the participants taxable income and put aside into a FSA. As qualified expenses are incurred, claims are submitted and then participants are reimbursed for these expenses from their account.
What types of expenses are qualified?
An expense can only qualify if it is not reimbursed by any insurance. Examples include health insurance co-pays and deductibles, anticipated out-of-pocket medical expenses for the entire family, such as dental and vision, and child care expenses which are necessary for employment outside the home. Over-the-counter drugs, health club dues and babysitter expenses are not qualified expenses unless accompanied by a letter of medical necessity from a physician. For further information about additional eligible expenses, contact the Human Resources Department.
What happens if I don’t use all the money in my account?
Under Federal regulations, any amount put into your account that is not claimed during the year for qualified expenses is forfeited.