Features of the FSA

 

The Horace Mann Flexible Benefit Spending Accounts through PayFlex are options during Open Enrollment or as a new hire. Features include:

 

  • Health FSA - New IRS maximum: $2,600
  • Limited Health FSA - maximum: $2,600 - for High Deductible Health Plan with HSA account participants.  This FSA is limited to eligible Vision and Dental expenses only.
  • Dependent Care FSA - IRS maximum: $5,000
  • Use of a debit card for eligible FSA expenses
  • A comprehensive website, http://horacemann.healthhub.com, where employees can view claim status, FAQs, and access information through HealthHubTM. 
    • Planning tools, forms and educational materials
    • Online claim submission with quick turn-around time and tracking of account balances

 

Provisions of the FSA: Use it or lose it!

  • Deposits to your FSA accounts are only made during the calendar year between 1/1/17 and 12/31/17.
  • Use it or lose it!  You have until 3/15/18 to incur eligible expenses for 2017 monies and until 3/31/18 to submit eligible expenses for reimbursement for 2017 monies.

 

Advantages of an FSA

FSAs provide you with an important tax advantage [see chart below] that can help you pay health care and dependent care expenses on a pretax basis. By anticipating your family’s health care and dependent care costs for the next year, you can actually lower your taxable income. New elections must be made each year to the Flexible Spending Account to continue participation.

  • An account minimum of $100 per year is required in each FSA account.
  • Each year, a fee of $18 is charged for the administrative costs of the account. 

 

 

Imagine your tax rate is 25% and you have $2,600 in eligible health care expenses:

Imagine your tax rate is 25% and you have $5,000 in eligible dependent care expenses:

 

With FSA

No FSA

 

With FSA

No FSA

Eligible Expenses:

$2,600

$2,600

Eligible Expenses:

$5,000

$5,000

Tax Benefit:

   (650.00)

         0

Tax Benefit:

(1,250)

         0

Final Cost  to You:

$1,950.00*

$2,600

Final Cost to You:

$3,750*

$5,000

 

 

 

*This does not include the fee of $18 which is charged for the administrative costs of the account.

 


Types of Flexible Spending Accounts (FSAs)

 

Dependent Care FSA

 

The Dependent Care FSA lets Roanoke City Public Schools employees use pretax dollars toward qualified dependent care such as caring for children under age 13 or caring for elders. See IRS publication 503.  Examples include:

§  The cost of child or adult dependent care

§  The cost for an individual to provide care either in or out of your house

§  Nursery schools and preschools (excluding kindergarten)

 

The maximum amount you can contribute to your Dependent Care Flexible Spending Account is $5,000.

 

 

Health FSA

 

This program lets Roanoke City Public Schools employees pay for certain IRS-approved medical care expenses (as of January 1, 2010 under health care reform) not covered by their insurance plan with pretax dollars as well as copays, deductibles and coinsurance. See IRS publication 502. Examples include:

·         Hearing services, including hearing aids and batteries

·         Vision services, including contact lenses, contact lens solution, eye examinations and eyeglasses

·         Dental services and orthodontia

·         Chiropractic services

·         Acupuncture

·         Prescription contraceptives

 

The maximum amount you can contribute to your Health Care Flexible Spending Account is $2,600.

 

 

Limited Purpose Health FSA (only if you are enrolled in the HDHP with HSA Plan)

 

If you are in the HDHP with HSA you are allowed to open a Limited Health Care FSA.  This program lets Roanoke City Public Schools employees pay for certain IRS-approved medical care expenses (as of January 1, 2010 under health care reform) not covered by your insurance plan, with pretax dollars. See IRS publication 502. Examples include:

·         Vision services, including contact lenses, contact lens solution, eye examinations and eyeglasses

·         Dental services and orthodontia

The maximum amount you can contribute to your Limited Health Care Flexible Spending Account is $2,600.

 


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