Features
of the FSA
The Horace Mann
Flexible Benefit Spending Accounts 2020 provisions:
- Health FSA - IRS maximum: $2,700
- Limited Health FSA - maximum: $2,700 - 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: https://horacemann.payflex.com/horacemann/index.html where employees
can view claim status, FAQs, and access information:
- Planning tools,
forms and educational materials
- Online claim
submission with quick turn-around time and tracking of account balances
FSA for 2020 monies: Use it or lose it!
- Deposits made during the calendar year 2020, between 1/1/20 and 12/31/20.
- Use it or lose it! You have until 3/15/21 to incur eligible expenses for 2020 monies and until 3/31/21 to submit eligible expenses for reimbursement for 2020 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.
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Imagine your tax rate is 25% and you have $2,700 in eligible health
care expenses:
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Imagine your tax rate is 25% and you have $5,000 in eligible
dependent care expenses:
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With
FSA
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No
FSA
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With
FSA
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No
FSA
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Eligible
Expenses:
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$2,700
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$2,700
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Eligible
Expenses:
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$5,000
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$5,000
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Tax
Benefit:
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(675)
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0
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Tax
Benefit:
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(1,250)
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0
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Final
Cost to You:
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$2025*
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$2,700
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Final
Cost to You:
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$3,750*
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$5,000
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*This does not include the fee of $18
which is charged for the administrative costs of the account.
Types of Flexible Spending Accounts (FSAs)
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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.
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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 $2,700.
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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 $2,700.
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