GBS DLL booklet 2016_Flip

Flexible Spending Accounts
(FSA)
Flexible Spending Accounts allow you to pay for certain
out-of pocket healthcare and dependent care expenses
with pretax dollars. Each year, you may elect to deposit
pretax funds from your pay for deposit into a Flexible
Spending Account for either medical/dental/Rx/vision
expenses or eligible dependent care expenses. You
choose the amount that you want deducted from each
paycheck, and the maximum amount that you can set
aside varies by the type of FSA as explained in the next
section. Keep in mind that the contribution amount you
elect remains in effect throughout the calendar year,
unless you have a “Qualified Life Event.” See page 8
for details on a Qualified Life Event.
Reminder: FSA — Each year you must
enroll in the Flexible Spending Accounts if
you want to participate in the upcoming
Plan Year.
Businessolver Administers DLL’ Flexible
Spending Accounts (FSA)
A Visa debit card will be provided to each member who
elects this benefit and it can be used for qualified
purchases. You can use the debit card to pay for your
eligible expenses, or you may pay out-of-pocket and
submit a claim for reimbursement. When you use the
debit card, it is important that you retain your receipts
as you may be asked to substantiate certain claims.
For more detailed information about expense eligibility,
please refer to the IRS Publication 502 and IRS
Publication 503 (www.irs.gov).
Medical Flexible Spending Account (Medical FSA)
The Medical FSA allows you to reduce your taxable
income by setting aside funds for qualified medical
expenses for you and your family. You may contribute
between $100 and $2,500 to a Medical FSA and use it
to pay for medical, prescription, dental, and vision
expenses that are not covered by insurance.
Procedures considered cosmetic are not eligible
expenses. The total amount elected for the year is
available on the first day of eligibility.
Reminder: You will receive a new debit
card if your card expires in 2016.
Limited Purpose Medical Flexible Spending Account
(for HDHP with a Health Spending Account (HSA)
participants ONLY)
Important Note:
Federal regulations mandated that the
maximum amount an employee can contribute
on a pre-tax basis to a health care FSA is
$2,500.
Members enrolled in the HDHP are eligible to participate
in the Limited Purpose Medical FSA, which can be used
for qualified dental and vision expenses. The Limited
Purpose Medical FSA may not be used for medical and
prescription expenses. HDHP participants will need to
use their Health Savings Account for medical and
prescription expenses. Procedures considered
cosmetic are not eligible expenses. You may contribute
between $100 and $2,500 to your Limited Purpose
Medical FSA. The total amount elected for the year is
available for you to use on the first day of eligibility.
The three types of Flexible Spending Accounts offered
by DLL are the Medical Flexible Spending Account, the
Limited Purpose Medical Flexible Spending Account
and the Dependent Care Flexible Spending Account.
The FSA deduction is made before income taxes are
calculated; therefore, you pay no income tax on
these expenses.
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