FLEXIBLE BENEFITS ADMINISTRATION FREQUENTLY ASKED QUESTIONS

Health Care FSA

Q: Are there minimum and maximum amounts I can contribute?
A: Your employer may specify a minimum contribution amount that you must contribute. As a result of health care reform (PPACA), effective January 1, 2013 the IRS maximum per person for the health care FSA will be $2500.

Q: How do I get reimbursed for my expenses?
A: You may visit the consumer portal and file a claim online or print an FSA claim form and send it in the mail.

Q: If I use my TabenFlex Benny Card to pay for qualified medical expenses, do I still need to keep my receipts and other documentation?
A: Yes, all eligible expenses are required to be validated. Most expenses paid for with your TabenFlex Benny card can be electronically validated but you should always keep your receipts and other documentation for tax purposes and in case we need to further validate your expenses.

Q: Do I have to wait for the money to be deposited into my account before I can make a claim for reimbursement?
A: No. The entire amount you set aside is available to you on the first day of the plan year.

Q: Can I request FSA reimbursement for eligible services I received before the plan year begins if I am not billed until after the start of the plan year?
A: No. According to IRS guidelines, an expense is incurred at the time the service is provided, not when you are billed or when you pay for the service.

Q: Can I be reimbursed for my spouse's deductible, co-pays or other out-of-pocket medical expenses?
A: Yes, your FSA can be used to cover qualifying out-of-pocket medical expenses incurred by any member of your family claimed as a dependent on your tax returns, or by unmarried children through age 26.

Q: What if I have incurred expenses at the end of the plan year but I don't submit a claim by the end of the plan year?
A: Your employer may specify an additional amount of time, called a "run-out period" at the end of the plan year to submit claims for services provided during the plan year. You should check with your Human Resources department.

Q: What happens if I submit a claim for an amount greater than what I have in my FSA account at the time?
A: The entire amount you chose to set aside is available to you at the start of the plan year. If you file a claim for an amount greater than what is in your account, you will still be reimbursed (up to the total amount elected for the plan year). Deductions from your paycheck will continue to go into the FSA to make up the difference. You are allowed to submit claims for reimbursement up to the total amount you set aside for the plan year.

Q: What funds are available to me on the first day of the plan year?
A: The entire amount you elected to set aside for the year is available to you on the first day of the plan year.

Q: What happens if I terminate employment during the plan year?
A: You will have an additional amount of time called a "run-out period" after termination to submit claims for reimbursement. However, you will only be reimbursed for services you received while you were employed (unless you continue to contribute to your FSA through COBRA).

Q: What if I don't use all of the money in my account before the end of the plan year?
A: You are not allowed to keep any money left in your account at the end of the year. This is called the "use-it-or-lose-it" rule. However, your employer may specify a grace period so you should check with your Human Resources department.

Q: Can I change the amount of money I set aside in my FSA in the middle of the plan year?
A: No, you cannot change your election amount until the next enrollment period. Only if there is a status change may you change your election amount during the plan year. A status change includes marriage, divorce, birth or adoption of a child, death of a family member or an employment status change for yourself or your spouse.

Dependent Care FSA

Q: What is the difference between a Medical (Health Care) FSA and a Dependent Care FSA?
A: Dollars from a medical FSA can only be used for qualified out-of-pocket medical expenses, including deductibles, co-pays, prescriptions and some over-the-count medications. Dependent Care FSA dollars can only be used for childcare services for your dependents that are younger than thirteen years of age or adult dependents who are unable to care for themselves.

Q: What is the maximum amount I can contribute to a Dependent Care FSA in 2012?
A: In 2013, the maximum amount that can be contributed to a Dependent Care FSA is $5,000 for a married couple filing taxes jointly, or for a single person filing as head of household; or $2,500 for a married couple filing taxes separately.

Q: What funds are available to me on the first day of the plan year?
A: Unlike Health Care FSA funds, Dependent Care FSA funds are not available on the first day of the plan year. The only funds available at any time are the dollars that have already been set aside (already deducted from your paychecks) and are in the account. Advance reimbursements from your Dependent Care FSA are not allowed.

Q: What happens if my child turns thirteen during the plan year? Can I use the funds in my Dependent Care FSA account for the entire year?
A: No, you will only be reimbursed for eligible childcare expenses incurred before your child's thirteenth birthday. However, you may adjust your elections by filing for a Qualified Change in Status.

Q: Can I use my Dependent Care FSA for domestic partners and their dependents?
A: No, you can only use money in your Dependent Care FSA for children or adults claimed as dependents on your tax return.

Q: If I participate in a Dependent Care FSA, will I still be able to claim the dependent care tax credit on my federal income tax return?
A: No, if you participate in the TabenFlex Dependent Care FSA plan, you are not allowed to claim any other dependent care tax benefits for the tax-free amounts you receive through this plan. However, you are allowed to claim expenses not reimbursed through your FSA.

Q: What happens if I terminate employment during the plan year?
A: As long as you were working or seeking work during the time you were incurring childcare expenses, you may have until the end of the plan year to submit your dependent care expenses incurred during the plan year for reimbursement (each employer is different so check with your human resource department for details)

Q: What happens if I submit a claim for an amount greater than what I have in my Dependent Care FSA account at the time?
A: If you submit a claim for an amount greater than what you have in your Dependent Care FSA account at the time, the portion of the claim that is above the amount you have in your account will remain 'pending' until funds are available from future contributions.

Q: If I pay my dependent care provider in advance of the services, can I file my claim after I pay?
A: No. Only charges that have been fully incurred can be distributed for reimbursement.

Q: What does "incurred" mean?
A: Incurred is defined by the IRS as the date(s) that the services are provided that gave rise to the expense. Expenses are not considered to be provided at the time you are billed. That means for Dependent Care FSAs, if you pay for services in advance, you cannot claim the expenses until you actually receive services. For example, if you pay January's expenses at the beginning of the month, you cannot be reimbursed until the end of January when all of the services have been received. However, you may file a claim weekly for that week's services.

Q: Do kindergarten charges qualify as Dependent Care FSA expenses?
A: No. Expenses for education do not qualify as Dependent Care expenses. However, if you are charged for after care for the portion of the day that your child attends the school for care and well-being, this charge does qualify as a Dependent Care expense. Your provider must provide you with documentation for the charges for the portion of the day that is specifically for care and well-being.

Q: Do summer camps that include an overnight stay qualify as Dependent Care expenses?
A: No. Expenses that include overnight care are not qualified expenses. The charges cannot be prorated to include the portion that was for care during the day while you were working.

Q: Do charges for food, transportation and activity fees qualify as Dependent Care expenses?
A: No. Only charges for care and well-being in order for you to work or look for work qualify as Dependent Care expenses. Separately billed charges for food, transportation and activity fees do not qualify.

Q: What does "gainfully employed" mean?
A: One of the requirements for you to receive reimbursements from a Dependent Care FSA is that the expense is incurred allowing you and your spouse to be gainfully employed. This means that you are working and earning an income. You are not considered gainfully employed during paid vacation time or sick days. Gainful employment is determined on a daily basis. Since you are an employee of your employer, you are gainfully employed. If you have a legal spouse, then your spouse would also need to be gainfully employed for your expenses to be eligible. Other definitions of gainful employment include people who are:

Unemployed but actively seeking work;
Self-employed;
Physically or mentally not capable of self-care;
Full-time students.

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