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DIOCESE OF RALEIGH BENEFITS
FLEXIBLE SPENDING ACCOUNTS
What is a Flexible Spending Account Plan?
A Flexible Spending Account (FSA) Plan is an employer-sponsored optional benefit that allows employees to pay for eligible healthcare and dependent care expenses on a pre-tax basis.
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What is a Flexible Spending Account Plan?
Employees can contribute a portion of their earnings to pay for certain out-of-pocket healthcare and dependent care expenses incurred for themselves or eligible dependents. Contributions are exempt from all payroll taxes.
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Flexible Spending Accounts
Flexible Spending Account Plans have two separate accounts an employee can contribute towards:
Healthcare Flexible Spending Account
Dependent Care Flexible Spending Account
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Why use a Flexible Spending Account Plan?
Participation in a Healthcare FSA allows you to use pre-tax money for out-of-pocket medical, dental, vision expenses such as co-pays and deductibles.
Participation in a Dependent care FSA allows you to use pre-tax money for expenses related to child care, after school care, and adult care.
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How Does a Flexible Spending Account Plan Work?
An employee determines an amount annually to pre-tax for healthcare and/or dependent care expenses they expect to incur in the coming year.
Elected amount is withheld pre-taxed from employee’s pay through payroll deduction.
Monies deducted are placed in an FSA account in employee’s name.
When employee incurs a reimbursable expense they can submit a claim for reimbursement from their FSA account.
Expenses can be submitted for reimbursement as frequently as the employee chooses.
Employee can be reimbursed by check, direct deposit, or use the issued FSA Debit card (healthcare only).
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Healthcare FSA
Participation in the Healthcare FSA allows you to use pre-tax money for out of pocket medical, dental, or vision expenses such as co-pays and deductibles.
The 2015 annual IRS maximum amount you can pre-tax is $2,550 per calendar year.
Participants can be reimbursed up to their account election, regardless of their current account balance.
Monies designated for the Healthcare FSA cannot be moved or used for dependent care expenses.
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Dependent Care FSA
Participation in the Dependent care FSA allows you to use pre-tax money for expenses related to child care, after school care, and elderly dependent care.
The annual IRS maximum amount you can pre-tax is $5,000 per calendar year.
With a dependent care FSA participants can only be reimbursed up to the balance available in their account.
Monies designated for Dependent Care FSA cannot be moved or used for healthcare expenses.
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Who is Eligible to Participate in Flexible Spending Account Plans?
The Diocese of Raleigh allows all Regular Full-time employees to participate in the FSA plans.
Eligible employees do not have to be enrolled in the Diocese of Raleigh healthcare plans to participate.
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Who is Eligible to Incur Expenses Under Flexible Spending Accounts?
Reimbursements can cover expenses for:
•You•Your spouse• Children (eligible IRS dependent) • Parents (eligible IRS dependent)
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When Can You Enroll In The Flexible Spending Account Plans?
Annual enrollment for employees who meet the eligibility requirement takes place in December of each year to enroll for the upcoming year.
New employees hired within the year are eligible at date of hire.
An employee who is eligible for the annual enrollment but elects not to participate will not be eligible until the following year, unless they experience a qualifying life event.
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How Do You Enroll in the Flexible Spending Account Plans?
The Diocese of Raleigh Healthcare and Dependent Care FSA plans are administered by Benefit Allocation Systems (BAS).
Enrollment in the plans can be done by using their enrollment system at www.MyEnroll.com
Participants will be required to set up a UserID and Password in order to enroll. Detailed enrollment instructions can be found on the diocesan website under the Benefits section of Human Resources.
Participants can contact BAS at 1-800-945-5513 for assistance.
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How Do Reimbursements Work with a Flexible Spending Account?
• Once services are incurred, you submit proof of the expense along with either a Medical or Dependent Reimbursement Claim Form.
• Healthcare charges incurred using the FSA debit card do not have to be submitted for reimbursement but may require substantiation of the charge.
• Claims for reimbursement can be submitted up to February 28th of the following calendar year.
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Optional FSA Debit Card
• Participants in the Healthcare FSA will be issued a Flex Debit Master Card (Benny Card).
• The Benny Card works like a debit card to pay for charges incurred at time of service.
• Amount of charge is automatically deducted from FSA balance at time of payment.
• Substantiation of the charge may be required.
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Notes on FSA Plans
• Healthcare and Dependent Care FSA plans have a use-it or lose-it rule.
• Monies not used with receipts for dates of service within the plan year are forfeited to the FSA plan with the Diocese.
• Still, FSA plans are a great way to save taxes on out-of-pocket expenses incurred for healthcare and dependent care.
• Budgeting for these expenses by using a FSA will mean more money in your pocket!
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Contact Information
• For questions regarding Flexible Spending Accounts contact Nancy von Gunten, Benefits Administrator, at 919-821-9775 or email at: [email protected]
• You can find additional general information on Flexible Spending Accounts at www.irs.gov
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