Flexible Spending Account

Flexible Spending Account

What is a Flexible Spending Account Plan?

A Flexible Spending Account (FSA) allows you to designate a certain amount of your taxable income on a pre-tax basis to pay for out-of-pocket health care and dependent care expenses. Please remember: You must sign up each year for this benefit. Per IRS guidelines, we cannot automatically re-enroll you year over year.

There are two types of FSA plans:

• HEALTH CARE REIMBURSEMENT ACCOUNT: Money from this account can be used to pay for certain health care expenses that are not reimbursed by another source. Examples of this include plan deductibles and co-payments, uncovered dental expenses including orthodontia or vision expenses. A list of the more common ELIGIBLE HEALTH CARE EXPENSES is provided for your review.
• DEPENDENT CARE REIMBURSEMENT ACCOUNT: Money from this account can be used to pay for certain dependent care expenses, which are incurred so that you (and your spouse, if married) are able to work. The availability of funds for your Dependent Care Reimbursement Account will be based on moneys accrued through payroll deductions. Qualified dependents are children under the age of 13 and dependents of any age who are physically or mentally unable to care for themselves. A description of the DEPENDENT CARE REIMBURSEMENT PLAN is provided for your review.

(back to top)

YCT FSA Brochure

YCT FSA Claim Form

Who do I contact if I Have Any Questions About My FSA Account?

If you have any questions regarding your Health or Dependent Care Fleixible Spending Accoutn(s) you need to contact:
Administrative Enterprises, Inc. at (602) 789-1170 or 1-800-762-2234.

(back to top)

Eligible Health Care Expenses

The following represents a list of some of the Health Care eligible expenses allowed under the Internal Revenue Service Code.

• Acupuncture
• Alcoholism Treatment
• Ambulance
• Artificial limbs
• Braille books
• Car controls (special for handicapped)
• Deductibles, Co-insurance and Co-payments for medical, dental and vision services
• Durable Medical Equipment (crutches, wheelchair, walker)
• Eyeglasses, lenses, frames, examinations - contact lens solutions/cleaners
• Guide dog - purchase for blind or deaf
• Hearing aids
• Hospital Services
• Insulin/test strips/lancets
• Over the counter medications/supplies
• Oxygen
• Physical exams- but not employment related physicalsv
• Most Prescription drugs (no over the counter, vitamins, minerals or supplements)
• Smoking cessation programs and prescription drugs, NOT over the counter items such as nicotine patches and gum
• Special schooling for a physically or mentally handicapped family member (testing not covered)
• Telephone or television equipment which displays for the deaf.
• Transportation expense for essential medical care only - reimbursement at .12 cents a mile.
• Fees to doctors, hospitals, etc for:
  • Anesthesiologist
  • Podiatrist
  • Chiropractor
  • Practical and Registered Nurse
  • Dentist
  • Psychiatrist
  • Dermatologist
  • Psychologist (medical care only)
  • Gynecologist
  • Surgeon
  • Midwife
  • Laboratory Tests
  • Neurologist
  • Ophthalmologist / Optometrist
  • Obstetrician
  • Physical Therapy-licensed physical therapist for medical condition only

Orthodontic Care - eligible expenses are charges for initial banding and monthly adjustments for active band treatment only. (Eligible only as services rendered - cannot be paid in advance. You must provide a copy of the treatment plan and/or service agreement with the first reimbursement request.)

(back to top)

Health Care Expenses That Are NOT Reimbursable

• Cosmetic surgery/treatment/prescription (except when directly related to a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease)
• Spas, whirlpools, dance classes etc. - even when recommended by doctor
• Weight reduction programs, weight loss prescriptions, or treatment for general well being
• Massage Therapy/ Rolfing - Generally no, unless prescribed by a doctor to treat a specific injury or trauma.
• Insurance premiums
• Dental Cosmetic services, including teeth whitening, bonding, etc
• Diaper Service
• Maternity clothes
• Health Club dues
• Resort or Spa visits
• Hair Loss Treatments/Prescriptions

Eligible Dependent Care Expenses

Your Dependent Care Account may be used to reimburse you for expenses related to the care of your dependents who are under the age of 13, or dependents of any age who reside in your household and who are physically or mentally incapable of taking care of themselves.

(back to top)

Eligible Expenses Are Defined as Follows:

• The expense must be employment related
• If you are married, your spouse must also work (unless disabled or a full-time student)
• Expenses may not exceed the lesser of you or your spouse's income (Note: If your spouse is disabled or a full-time student, his/her salary will be $200 per month if you have one child or $400 per month if your have two or more children.)
• Expenses may not exceed $5,000 per year ($2,500 if married and filing separate returns)
• The person providing the dependent care is not the employee or the spouse's child or other person who could be claimed as a dependent

Typical expenses include payments to persons providing dependent care services in the home, and to nursery schools and day care centers so that the responsible individual may be employed.

Expenses NOT Allowed:

• Registration Fees
• Overnight Camp
• Educational Classes (i.e. Sports Camp, Horseback Riding, Swimming lessons)
• Kindergarten or Private School

(back to top)

Period of Coverage

Reimbursement available from your Health Care Flexible Spending Account is limited to qualifying expenses incurred during the annual "period of coverage" (July 1 through June 30). Your "period of coverage" and eligible reimbursements will be affected if you start, change or cancel your medical election due to a qualified status change or mid-year enrollment. Eligible claims must be incurred during your "period of coverage".

Separation From Service

If you terminate employment for any reason, your Health Care Flexible Spending Account will terminate on the last day of the month in which you were employed. You will only be able to seek reimbursement for expenses incurred through the last day of the month in which you were employed, unless you elect continuation of coverage under the COBRA law.

If you have a Dependent Care Spending Account you will be able to seek reimbursement through the end of the Plan Year.

(back to top)

Forfeiture of Unused Funds

You need to carefully consider how much you want to deposit. Because of the tax advantages available, the amounts you deposit in your FSA account(s) can only be used for expenses incurred with dates of service during the Plan Year (July 1 through June 30). Federal law requires that you forfeit the money in your FSA account(s) if it is not used to reimburse expenses incurred within the Plan Year. The regulations do not allow your employer to return unused funds to you, permit you to transfer dollars from one account to another, or carry over dollars from the following Plan Year.

Since it is likely that you will incur some expenses late in the year, your may submit claims for reimbursement until September 30 after the Plan Year ends. If you submit claims after the Plan Year ends they must be postmarked by the U.S. Mail on or before September 30. Claims received after September 30, which do not have a U.S. Postal Service postmark date on or before the September 30 date will not be considered for payment.

Remember, that after the Plan Year ends, any unused amounts are forfeited. So it is very important to estimate your expenses carefully when determining your annual election.

(back to top)

Forfeiture of Unclaimed Reimbursement Account Benefits

Reimbursement checks issued from the FSA accounts must be cashed within 12 months of the close of the plan year or funds will be considered "unclaimed" and the monies will be forfeited.

Deadline For Filing Claims

Claims incurred in a Plan Year may be reimbursed from that Plan Year's funds, if submitted no later than September 30th of the subsequent year.

(back to top)