Flexible Spending Account (FSA)
Our FSAs allow you the option of pre-tax pay deductions for unreimbursed
health expenses and
child/dependent care expenses.
By participating in our FSAs, you pay certain health expenses and adult and child dependent care with “UNTAXED” dollars. You save substantial tax dollars and increase your net take home pay.
Initial enrollment must be completed prior to the effective date of your coverage and will be effective for the balance of the calendar year.
You must re-enroll annually (during open enrollment) if you wish to continue taking advantage of the savings opportunity the plan offers.
You can use the FSA for reimbursement of qualifying healthcare expenses not reimbursed by insurance. Some examples of reimbursable expenses are deductibles and co-payments, eye exams, glasses and prescription expenses not covered by the healthcare plan. Eligible expenses are defined by Tax Code Section 213(d). In most instances, expenses related to cosmetic procedures (e.g., teeth bleaching, plastic surgery, etc.) are not eligible for reimbursement. Please check with
Diversified Benefit Services, Inc. (DBS) if you are not sure if an expense qualifies. The maximum you can contribute for healthcare expenses is $2,850 annually.
You will receive a debit card to pay for qualifying healthcare expenses. Please note, a $5 fee is assessed by DBS for replacement cards. DBS will charge this fee directly to your FSA. If you do not use the debit card, you will need to submit the claim for reimbursement online, via the mobile app, or with a paper claim form. You will also need to submit documentation of the services provided. This information can be submitted electronically at
www.dbsbenefits.com or by using the Diversified Benefit Services app. Services must be inccurred within the plan year to be eligible for reimbursement. Reimbursements will be distributed via direct deposit.
We also offer a Dependent Care FSA. The Dependent Care FSA also allows you to use pre-tax dollars for dependent care expenses. For example, if you spend $96.15 per week on daycare expenses for a dependent child, using the FSA means that you’ll pay no income tax on $5,000 of your pay in a year!
The maximum you can contribute for dependent care is $5,000 annually (or $2,500 if you are married filing separately). Eligible dependents are children under the age of 13 or any disabled adult you claim as a deduction on your personal income tax return.
To receive reimbursement for dependent care expenses, you must submit your claim along with your receipt for services. This can be done electronically at
www.dbsbenefits.com, by using the Diversified Benefit Services app, or by submitting a paper claim form. Services must be inccurred within the plan year to be eligible for reimbursement. Reimbursements will be distributed via direct deposit.
Elections cannot be changed or revoked during the plan year without a change in family status. Changes in family status include, but are not limited to marriage, divorce, death of a spouse or dependent, birth or adoption of a child and termination or commencement of a spouse’s employment. The Plan Administrator will determine if your event permits a change or revocation of an election during the plan year.
Use it or lose it! You should review your expenses carefully before making an election in order to minimize or eliminate unused benefits at the end of the year. However, if you don’t spend all your dollars within the calendar year (January through December), you can continue to use those dollars for qualified expenses until March 15th. All claims for the plan year must be submitted prior to March 31st. If you’re not able to use all of your money by then, the IRS requires you to forfeit the balance remaining in your account. Please estimate your expenses carefully.
By electing to redirect a portion of your salary to your FSA, you essentially “bank” your money in a tax-free account. The money can be used to pay for co-pays, deductibles and other uncovered expenses that you formerly paid with after-tax dollars.
