An FSA is funded through your employer, at the time of Open Enrollment period you may communicate how much you would like to contribute to your account for the coming year.
An FSA is funded through your employer, at the time of Open Enrollment period you may communicate how much you would like to contribute to your account for the coming year.
The maximum amount for 2020 is $2,750 for a healthcare FSA or limited purpose FSA
The FSA carryover is one option that an employer can choose to put into place. If chosen by the employer, the new IRS carryover maximum is $550, though some groups may choose to stay at the previous $500 limit.
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This is an option that an employer can choose to put into place on your FSA. A standard grace period is 2 months and 15 days immediately following the end of your plan year and allows you to continue spending down unspent funds from your FSA account.
What happens to unused FSA funds all depends on the plan that was put in place by your employer. I.e If there is a carryover you may carry funds up to $550 into the next plan year, another is if you have a grace period in place to use your unspent funds. The standard plan that many employers place is a ‘use it or lose it” rule.
A Limited Purpose FSA covers qualified dental and vision services such as dental cleaning, vision exams, etc.
You may not stockpile, no more than two of the same item on the same day. You cannot buy an amount that will fill up the year.
Dependent Care FSA has a “use it or lose it” rule if funds are left over they will be handed over to your employer.
To qualify for dependent care you must fall into the following:
- You are gainfully employed
- Your child t must be under the age of 13 or over if age with disabilities
- Adult dependents who can't take care of themselves.
Please keep in mind that they must live with you and be claimed as dependents on your tax return.
The maximum is $5,000 for families, for individuals it is $2,500.
A Healthcare FSA covers medical expenses that most individuals would pay out of pocket for, Dependent Care FSA covers qualified service that allow an employee to work I.e child care and afterschool programs
It can be covered with a letter medical necessity; however, food supplements are not included.
It can be covered with a letter of medical necessity.
HSAs are tax-advantaged savings accounts that can help you pay for medical expenses tax-free now and in the future.
A list of investment options can be found on the online portal. All investments are on the Devenir platform.
For 2020 the maximum for self-coverage is $3,550.00, and for family coverage the maximum is $7,100.00. If you are over the age of 65, an additional $1,000.00 catch up contribution can be made.
A trustee to trustee transfer can by completing the necessary form found on our website. This would be submitted to your current HSA bank for them to request the funds directly from your previously utilized bank.
All HSA contributions are based on the calendar year.
Post-tax contributions can be made directly with your HSA bank by completing the necessary deposit form.
Yes, all tax documents are issued directly from your HSA bank. Form 5498 shows all deposits and this amount is identified on the 1040 return on Form 8889.
No, the HSA account is a self-governed account. All receipts should be kept for tax purposes.
Most plans are set up to pull from the FSA first, but others may draw from the HRA first depending on their plan design.
Based on your plan design, some are front funded, monthly, quarterly or annually.
An HRA only covers qualified medical and dental expenses.
Each HRA is specific to each employer.
Typically, HRAs cover common medical expenses such as deductibles, coinsurance, copays, prescriptions, dental and vision expenses
Most HRAs do work with the card, some may not based on their specific plan design
If your Employer offers a Retiree HRA you may keep the funds, however if they do not the funds will be forfeited if no claims are submitted.
Most HRAs do rollover from year to year, however some may not. Please refer to your handbook for more information.
Most HRAs do cover your dependents as well. Some may require your dependents also be covered on your health insurance. Refer to your handbook for more information.
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. It gives employees in certain situations the right to pay premiums for and keep the group health insurance that they would otherwise lose after they: Reduce their work hours.
You can not continue cobra after the end date unless there is another life event.
You pay what your company pays, what you were paying, as well as a 2% admin fee.
The following life events will begin COBRA coverage, terminated, or reduction in hours you are qualified for a maximum of 18 months. A death has occurred, i.e. death of a covered employee or divorce
or legal separation of a covered employee from the covered employee's spouse. The maximum is 36 months.
Yes, you can fill out an ACH form for funds to be pulled out every month on the first for COBRA and the 5th for Retiree’s.
Yes, you can elect for just a dependent or spouse without taking coverage for one's self.
No, COBRA coverage starts the day after your active coverage ended. There can be no lapse in coverage.
No.
You should select “credit.” Benefit card transactions are signature-based and processed in the same manner as a
credit card transaction. The FBA Benefit Card does not require or include a PIN for authorization and there is no
“cash back” option
To make a payment, you can use your FBA portal or send in a check/money order to us. .
To see your account balance, you can use your online portal, your FBA mobile app or email us/call into our toll-free number to speak with customer service.
Your transaction amount may be greater then what is current in your account or you are attempting purchase a product that is not eligible
If your benefit card is misused, you will be required to reimburse the plan with a personal check, money order, or
online payment. Failure to repay the plan could result in adverse tax consequences.
A claim could be denied due to the following:
-Insufficient funds in your account
-Documentation is incomplete or not readable or simply just missing. Please be sure when submitting a claim that you provide the date of service, provider name, patient name, and description of service and amount.
-The expense is not eligible for reimbursement under your plan.
-You may have reached the maximum reimbursement amount for your coverage period.
-A claim may be denied because the service date is not with eligibility dates.
No. Your FBA Benefit Card is valid for three years from the issue date
No. In many cases, your transaction will be automatically verified by the card system using one of the IRS-approved
methods outlined below:
-The expense matches specific co-pay you have under your employer’s medical, pharmacy, vision, or dental
plan. For example, you may not be required to submit a statement or EOB if you have $20 co-pay for
physician office visits, and the payment was made to a physician office in the amount of $20.
-Recurring expenses will not result in a request for documentation as long as the expense equals the same
amount, duration, and provider as a previously approved
expense.
- You purchase a FSA-eligible item
-In limited situations, your claim information may be provided through an electronic file from your health
insurance carrier or other provider. In these situations, verifying expenses may not be required if the
electronic claim file is accompanied by an electronic or written confirmation for the health care provider that
indentifies your expense and verifies the amount.
No. Your benefit card will be deactivated upon termination of your employment. If you have qualified expenses to
submit after your termination of employment, you may use the traditional method of submitting a reimbursement form
with appropriate documentation. However, your qualified expenses must be incurred during your period of coverage
If you do not have a copy of your itemized receipt and receive a request for documentation, request a copy from the
provider (pharmacy, doctor, dentist, etc.)
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To register online go to fba.wealthcareportal.com
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Coverage under a health FSA generally would terminate upon a furlough. This is since an employee is likely no longer working the minimum number of hours required to maintain FSA eligibility. It may, however, depend on the plan terms and how the furlough is implemented.
An example, if an FSA requires a minimum of 30 hours per week to be eligible and an employee is regularly working 40 hours per week (8 hours per day) but will be furloughed one day per week, the employee likely will continue to be eligible for the FSA, because the employee is still working 32 hours per week.
Employers can extend the run-out deadline to their preferred length. Currently, the guidance does not specify a maximum length for a run-out period, but it should end within a reasonable period after the end of a plan year. The IRS announced a 90-day extension for federal income tax filing and HSA contributions (until July 15, 2020), a similar 90-day extension of the run-out period would seem to be reasonable. No matter the extension length, employers must notify their employees of the change and document the change in the plan document.
The answer is yes, so long as the plan document is amended to reflect that and all of its employees are notified and treated the same way. Eligibility for coverage would need to continue through the layoff/furlough.
Since a qualifying life event would include changes in cost and coverage, if the participant is dis-enrolled in any type of care program then the account holder would be able to stop their contributions for the rest of the plan year. If at a later time a participant is enrolled in a new program, the participant could use that as a qualifying life event (due to changes in cost and coverage) to start contributions again.
Per IRS regulations, participants can start, change, or stop contributions for commuter benefits at any time.