These questions and answers are provided for informational purposes only and are general in nature. Answers may differ based on your specific plan provisions. Please review your company's Plan Document and Summary Plan Description for specific plan provisions.

 

  1. Does a Health Care Flexible Spending Account replace my medical plans?

 

  1. How much money will I save by enrolling in a Flexible Spending Account?

 

  1. Why should I use a Health Care Flexible Spending Account for reimbursement rather than deducting my medical expenses on my federal income tax return?

 

  1. I am not enrolled in my company’s dental or vision benefits. Can a Health Care Flexible Spending Account help me?

 

  1. Are expenses that are reimbursed by my Health Care Flexible Spending Account eligible to be deducted on my federal income tax return as medical expenses?

 

  1. Can the Health Care Flexible Spending Account pay my doctor directly?

 

  1. Am I refunded the amount left in my Health Care Flexible Spending Account at the end of the plan year?

 

  1. What happens if I retire or terminate employment with the company mid-year?

 

  1. Whose expenses are eligible for reimbursement under a Health Care Flexible Spending Account?

 

  1. Where does the forfeited money go?

 

  1. How long is my election in effect?

 

  1. Is there a deadline for submitting claims?

 

  1. Are there limits to how much I can contribute to a Health Care Flexible Spending Account?

 

  1. Is there a toll-free number where I can get more information on eligible expenses or how the Acclaris Reimbursement Center process works?

 

  1. I have a baby-sitter who takes care of my kids, but he/she does not have a Tax Identification Number. What should I do since a Tax Identification Number is required with each Dependent Care reimbursement request?

 

  1. I would like to have someone come into my home and take care of my children instead of using a day-care facility, but I'm unsure if those expenses would qualify as eligible expenses under my Dependent Care Flexible Spending Account. Do they?

 

  1. If I elect to contribute money to a Dependent Care Flexible Spending Account as well as to a Health Care Flexible Spending Account, and I exhaust all of my health care money, can I use the monies in my Dependent Care Flexible Spending Account to pay for health care expenses?

 

  1. How can I check my Flexible Spending Account(s) balance?

 

  1. Why is the IRS allowing Health Care Flexible Spending Accounts to be used to reimburse for the cost of over-the-counter medications?

 

  1. What over-the-counter medications will be reimbursed?

 

  1. What over-the-counter medications will not be reimbursed?

 

  1. Is there a limit to the number of over-the-counter medications for which I can be reimbursed?

 

  1. How do I get reimbursed for my over-the-counter medications?

 

  1. What are my methods of payment?

 

  1. IRS Standard Mileage Rates

 

 

1. Does a Health Care Flexible Spending Account replace my medical plans?

No. A Health Care Flexible Spending Account offers you a means to pay for eligible out-of-pocket health care expenses with before-tax money. You should first submit your claims to your health care plan so they can pay according to the plan provisions. Then, the remaining out-of-pocket eligible expenses can be submitted to your Health Care Flexible Spending Account.

 

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2. How much money will I save by enrolling in a Flexible Spending Account?

Your before-tax contributions made to your Flexible Spending Account are not included in your gross income for federal (and most state) tax purposes. Your savings will be based upon your individual income and tax filings.

 

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3. Why should I use a Health Care Flexible Spending Account for reimbursement rather than deducting my medical expenses on my federal income tax return?

Only medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI) can be deducted on your federal income tax return. Before-tax Health Care Flexible Spending Account contributions are tax-free (for federal tax purposes). You do not have to meet the 7.5% AGI threshold before receiving the tax savings. Money set aside through a Flexible Spending Account is also exempt from FICA taxes.

 

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4. I’m not enrolled in my company’s dental or vision benefits. Can a Health Care Flexible Spending Account help me?

When you incur a dental or vision expense, simply submit your receipt for services with a Reimbursement Request Form – Health Care Flexible Spending Account indicating you do not have coverage.

 

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5. Are expenses that are reimbursed by my Health Care Flexible Spending Account eligible to be deducted on my federal income tax return as a medical expense?

No, because you have already received reimbursement with tax-free dollars. Only expenses not reimbursed through an insurance plan or a Flexible Spending Account may be claimed on your federal income tax return.

 

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6. Can the Health Care Flexible Spending Account pay my doctor directly?

No, it is the participant's responsibility to pay the provider. Reimbursements for expenses are sent directly to the participant.

 

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7. Am I refunded the amount left in my Health Care Flexible Spending Account at the end of the plan year?

No. The Health Care Flexible Spending Account is subject to the "use it or lose it" rule which means that any unused money left in your Flexible Spending Account at the end of the plan year, or grace period if applicable, will be forfeited. However, you can avoid any loss of funds by carefully determining how much to set aside and making sure that you file claims promptly and prior to end of the claims filing deadline established under your plan.

 

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8. What happens if I retire or terminate employment with the company mid-year?

Once you stop making contributions to your account, you cannot submit claims for expenses incurred after you stop participating. You may choose to continue your Health Care Spending Account deductions through COBRA on an after tax basis. You will be billed for the contribution amount and as long as you continue to pay, you will be able to continue using your account through the end of the plan year or your last monthly contribution, whichever occurs first.

 

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9. Whose expenses are eligible for reimbursement under a Health Care Flexible Spending Account?

A Health Care Flexible Spending Account may be used to reimburse eligible health care expenses for you and anyone who is claimed as a dependent on your federal income tax return.

 

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10. Where does the forfeited money go?

The IRS has imposed regulations for the use of forfeited money. The funds revert back to your employer and are generally used to defray the employer's costs for administering the plan.

 

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11. How long is my election in effect?

Your election is in effect until the end of the plan year. Each year you will have the opportunity to re-enroll and select a new annual election amount. You may be allowed to change your contribution amount during the year if you experience a change in status event as defined under your plan. If you stop contributing, only services incurred while you were making contributions will be reimbursed. Please refer to About Your Benefits: Health Care for more information.

 

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12. Is there a deadline for submitting claims?

Your employer will determine a year-end run-out period, which is generally three months after the end of the plan year. All claims must be submitted by such claims filing deadline as defined under your plan. Remember, claims must have been incurred during the plan year. The deadline for submitting claims are April 30 for the Dependent Care Spending Account and June 30 for the Health Care Spending Account.

 

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13. Are there limits to how much I can contribute to a Health Care Flexible Spending Account?

During the enrollment period each year, you decide how much you want to deposit into your Health Care Spending Account. You can set aside as little as $10 per month ($120 per year), up to a maximum of $425 per month ($5,100 per year).

 

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14. Is there a toll-free number where I can get more information on eligible expenses or how the Acclaris Reimbursement Center process works?

You can contact the Acclaris Reimbursement Center, virtually 24 hours a day, 7 days a week, at www.acclarisonline.com or call the Acclaris Reimbursement Center toll-free at 1-888-880-2775, Monday through Friday (excluding New York Stock Exchange holidays) between 8:00 A.M. and 8:00 p.m. Eastern Standard Time to speak with a Customer Service Representative.

 

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15. I have a baby-sitter who takes care of my kids, but he/she does not have a Tax Identification Number. What should I do since a Tax Identification Number is required with each Dependent Care reimbursement request?

If your baby-sitter does not have a Tax Identification Number, you must submit his/her nine-digit Social Security number with your reimbursement request.

 

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16. I would like to have someone come into my home and take care of my children instead of using a day-care facility, but I'm unsure if those expenses would qualify as eligible expenses under my Dependent Care Flexible Spending Account. Do they?

Yes. You can include expenses paid to a baby-sitter if the services are necessary in order for you (or, if you are married, you and your spouse) to work.

 

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17. If I elect to contribute money to a Dependent Care Flexible Spending Account as well as to a Health Care Flexible Spending Account, and I exhaust all of my health care money, can I use the monies in my Dependent Care Flexible Spending Account to pay for health care expenses?

No. The Health Care Flexible Spending Account and Dependent Care Flexible Spending Account are two separate accounts. You cannot transfer money between the two, or submit reimbursement requests that are not consistent with each account’s expense eligibility requirements.

 

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18. How can I check my Flexible Spending Account(s) balance?

If you have any questions about your account(s) status, please contact the Acclaris Reimbursement Center at www.acclarisonline.com virtually 24 hours a day, 7 days a week, or call the Acclaris Reimbursement Center toll-free at 1-888-880-2775, Monday through Friday (excluding New York Stock Exchange holidays) between 8:00 A.M. and 8:00 p.m. Eastern Standard Time to speak with a Customer Service Representative.

 

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19. Why is the IRS allowing Health Care Flexible Spending Accounts to be used to reimburse for the cost of over-the-counter medications?

The main reason is that a growing number of medications are becoming available without a prescription and are now available over-the-counter.

 

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20. What over-the-counter medications will be reimbursed?

Types of over-the-counter medications that are eligible for reimbursement include antacids, allergy medicines, pain relievers and cold medicines. Some over-the-counter drugs will be considered "dual purpose," meaning that they have a personal/cosmetic or general health purpose and a medical purpose. In order for these dual-purpose medications to be reimbursed through your health care flexible spending account, you may be required to include with your reimbursement request a letter of medical necessity from a medical practitioner. The letter must state that the medicine or drug is recommended to alleviate or treat a specific medical condition. A copy of the letter of medical necessity must be submitted each time that you submit a copy of your receipt for the "dual purpose" medication or drug.

 

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21. What over-the-counter medications will not be reimbursed?

In general, medications that are merely beneficial to your general health, such as dietary supplements, toiletries and sundry items, are not eligible for reimbursement.

 

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22. Is there a limit to the number of over-the-counter medications for which I can be reimbursed?

Stockpiling of over-the-counter medications is not allowable. Purchase must be of a reasonable quantity for use during the plan year.

 

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23. How do I get reimbursed for my over-the-counter medications?

You must complete a Reimbursement Request Form – Health Care Flexible Spending Account and attach a copy of the cash register receipt for eligible over-the-counter medications. The receipt must include the date of purchase, name of the drug or medicine and the amount paid. Handwritten non-prescription drug names on cash register receipts will not be accepted. The name of the drug(s) and price(s) must be circled on the receipt.

 

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24. What are my methods of payment?

You may be reimbursed by check, or by authorizing Direct Deposit of your payments directly into the bank of your choice. To authorize Direct Deposit, simply complete a Direct Deposit Authorization form and allow up to two weeks for Direct Deposit to be enabled. Payment by check will continue until the Direct Deposit is enabled. A Direct Deposit Authorization form can be found on this site or Fidelity NetBenefits® in the Forms section as well as on w3. If you would like to receive checks, no action is necessary.

 

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25. IRS Standard Mileage Rates

2009 - You can use a standard rate of 24 cents a mile for use of a car for medical reasons. You can also include parking fees and tolls.
2008 - You can use a standard rate of 19 cents a mile for use of a car for medical reasons. You can also include parking fees and tolls.

 

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These questions and answers are provided for informational purposes only and should not be construed as legal or tax advice. Please review your company's Plan Document and Summary Plan Description for specific plan provisions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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