Download Flexible Spending Account

Flexible Spending Account
Health Flexible Spending Account
The Health Flexible Spending Account allows the member to set aside a certain amount of
money from their salary to pay eligible health expenses for the member and those in his/her
household. The total dollar amount is set aside on a pre-tax basis, which means that the money
deposited into the account is not subject to taxes. Eligible withdrawals from this account are
not subject to taxes either which means that the member enjoys a “tax break” on such amount.
The Health Flexible Spending Account will allow the member to use this money for eligible
health expenses incurred during the plan year and the grace period. The member may elect to
set aside anywhere between the minimum of $240 dollars and the maximum of $2,500 per
year. It is strongly advised to carefully estimate the amount of money that will be put aside, as
this account has a “use it or lose it” clause. This clause stipulates that any positive balance not
claimed by the end of the grace period will be forfeited. If you would like more information
regarding your personal tax situation, it is advised that you contact their tax advisor.
Dependent Care Flexible Spending Account
The Dependent Care Flexible Spending Account also allows the member to set aside a certain
amount of money from their salary on a pre-tax basis to pay for eligible expenses. Members
having a Dependent Care Flexible Spending Account will be allowed to use their elected dollar
amount set aside for eligible dependent care expenses. Eligible dependents under this account
include the member’s dependent(s) under the age of 13, a dependent who is physically or
mentally unable to take care of themselves, or a spouse who is physically or mentally unable to
take care of themselves. The member may elect to set aside a yearly dollar amount anywhere
between $240 to $2500 (or $5000 if married and filling a joint return). Again, due to the “use
it or lose it” clause, it is strongly advised to carefully estimate the amount of money that will
be put aside for this account. Remember, this clause stipulates that any positive balance not
claimed by the end of the grace period will be fortified. If you would like more information
regarding your personal tax situation, it is advised that you contact their tax advisor.
Disclaimer: This document is intended only for informational purposes and is subject to revisions and/or changes. This document should not
override the original plan document for the group, any IRS regulations, or any professional advice.
Information about the Accounts
Claims
Employees may submit a claim for eligible expenses under their FSA plan. In order for any
expenses to be eligible for reimbursement, expenses must be incurred during the plan year or
grace period (approximately 2 ½ months after the plan year end date). Under the Health Flexible
Spending Account, the maximum amount of reimbursement allowed is the difference between
the annual election and the amount of reimbursement to date. Under the Dependent Care Flexible
Spending Account, the maximum amount reimbursed will be the difference between the amount
contributed to date and the amount reimbursed to date. A Debit Card will be issued to all
participants. When using a debit card with the plan, the IRS regulations require that each of the
claims must be adjudicated. If a debit card expense is not automatically adjudicated, the member
will receive an e-mail with a request for supporting documentation for that expense. If the
requested supporting documentation for the expense is not provided by the member, the member
may experience temporary deactivations of their debit card. Over the counter medication will
only be eligible under the plan with a doctor’s prescription. A list of eligible expenses can be
accessed by contacting the IRS, or at the following website: teb.125admin.com
Claim forms may also be used instead of the debit card but, will only be necessary on limited
occasions when and where debit cards are not accepted. You may submit a completed claim form
along with an itemized statement via mail, fax or e-mail to TEB Benefits group at:
TEB Benefits Group Inc.
702 Wyoming Ave. 79902
El Paso, TX 79907
Fax: (915) 542-3531
e-mail: [email protected]
You are encouraged to view and track your claims and account balances online at
teb.125admin.com.
Plan Years
All medical expenses must be incurred during the current plan year/grace period. Each plan year
starts on January 1st and ends December 31st. If the member still has a positive balance by the
end of the plan year, he/she may continue to use that balance during the plan’s grace period,
which is 2 ½ months after the end of the plan year. Any money not spent by the end of the grace
period will be forfeited. Any dollar amount approved for claims during the grace period will be
reduced from the corresponding Plan Year balance. During the grace period, if the member elects
to have an FSA account for a new plan year, and still has funds from the previous plan year, the
new balance will be used after the previous year’s funds have been exhausted.
COBRA
A member may continue to use their FSA account after their separation from the employer if
they are eligible for COBRA coverage. In order to be eligible for COBRA coverage, the member
must have an underspent account (the amount contributed is greater than the amount spent).
Eligibility along with any other information for COBRA coverage is described in the Code
Section 4980B under the IRS.
Frequently Asked Questions
Disclaimer: This document is intended only for informational purposes and is subject to revisions and/or changes. This document should not
override the original plan document for the group, any IRS regulations, or any professional advice.
When will I be able to participate in the Plan?
You are able to enroll in the plan as a new employee, during new employee orientation (NEO) or
as a current employee, during open enrollments. As a new employee your benefits become
effective the 1st of the following month after 30 days from your hire date. As an established
employee your benefits will become effective January 1st of the following calendar year after
CISD’s Open Enrollment sessions. You are also able to enroll in benefits if you have a qualifying
event such as: divorce, marriage, birth of a child, death of a dependent, loss of coverage, etc.
Who is eligible under the Plan?
 Full-time / Part-time CISD employee
 Employed for a minimum of 30 days
 Temporary, seasonal, or contract employees are not eligible
How can I enroll in the Plan?
In order to enroll in the plan, you must complete an application during new employee orientation
or open enrollments. In this application you will have to elect your benefit amount and
authorized contributions for each paycheck.
How does the Plan work?
Your contributions to your FSA Plan are tax sheltered. This means that after you elect an annual
amount to be contributed to your FSA Plan (a.k.a. Cafeteria plan), you will be able to use this
contribution to pay for certain kinds of benefits and expenses with tax-free dollars.
How much will be allocated from my earnings for this plan?
Each year, you will elect your annual contribution amount. This amount will be funded, or
deducted from your earnings over the course of 24 equal payments throughout the calendar
year. For new employees, the amount elected will be deducted in equal payments for the
remainder of the year. Your contribution amount will be taken out of each paycheck, tax-free,
and will be transferred into your FSA account.
What is the deadline to enroll in the plan?
If you are enrolling as a new employee, you must enroll in the plan before your effective date.
If you are enrolling during open enrollments you must enroll during the enrollment period
provided by CISD.
Can I change my plan elections after my effective date for that plan year?
Disclaimer: This document is intended only for informational purposes and is subject to revisions and/or changes. This document should not
override the original plan document for the group, any IRS regulations, or any professional advice.
Usually, it is not permitted to make any changes to the election made after the beginning of the
plan year. However, under a qualifying event such as: divorce, marriage, birth of a child, death of
a dependent, loss of coverage, etc., you may be permitted to make changes.
Do I have to re-enroll every plan year?
It is permitted for a member to make changes to his/her benefit elections during open
enrollments and/or in case of a qualifying event. In any of these two situations, a member may
increase or decrease contributions to the plan, re-enroll, or discontinue. In order to participate
in the FSA each plan year, you must re-enroll during open enrollments. Open enrollment dates
will be provided by the employer and/or plan administrator.
What happens if I don’t spend the money in my account?
Funds contributed into Flexible Spending Accounts do not roll over. Any funds remaining in the
account by the end of the plan year will be forfeited by the member. The member is encouraged
to estimate expenses before enrolling in the plan.
What if I miss a premium payment?
If you miss a premium payment due to FMLA, you can issue a check to cover the missed
premium(s). If you are not able to issue a check, payment arrangements will be made when you
return to work. These payment arrangements include, but are not limited to: lump sum payment,
double deduction from future payroll deductions, temporary increase in deduction until amount
owed is recovered, etc.
What happens if an employee is separated from the group?
If an employee is separated from the group, he/she will have 90 days after their separation date to
submit a claim for medical/ dependent care expenses incurred between January 1st and their
separations date. The member may also continue their account if they are eligible for COBRA.
Additional Questions?
Any questions not addressed in this document can be answered by reading the full plan
document of the Cafeteria Plans located at the CISD website teb.125admin.com or by contacting
TEB Benefits Group at:
TEB Benefits Group Inc.
702 Wyoming Ave. 79902
El Paso, TX 79907
Phone: (915) 542-3531
Disclaimer: This document is intended only for informational purposes and is subject to revisions and/or changes. This document should not
override the original plan document for the group, any IRS regulations, or any professional advice.