::BENEFITS

Healthcare and Dependent daycare Flexible Spending Accounts (FSA)

Healthcare and Dependent Daycare Flexible Spending Accounts, or FSAs, allow you to set aside funds on a pre-tax basis to pay eligible un-reimbursed medical and dependent daycare expenses during the year.

Over-the-Counter Medicines and Drugs are Reimbursable
Over-the-counter (OTC) medicines and drugs may be reimbursed by a Healthcare FSA if an itemized receipt is provided and the OTC medicine or drug was purchased to alleviate or treat personal injuries or sickness (e.g. pain relievers, allergy medication, cough medicine). The OTC Drug Ruling does not permit the reimbursement of dietary supplements (e.g. vitamins) used to promote general health. For an illustration of eligible expenses please refer to the FSA Enrollment Guide. The contributions you make to a FSA are not counted as part of your income for federal or state income tax purposes. Because of this tax advantage, the IRS places limits on the amount you may contribute, and when and how you use the money. For example, any of the FSA money not spent during the plan year ( July 1, 2005 - June 30, 2006 ) will be forfeited.

Dependent Daycare FSA Contributions
The IRS limits contributions to a Dependent Daycare FSA based on your marital status, how you file your income taxes and if your spouse works or attends school full-time. Generally, you may contribute up to $5,000 to a Dependent Daycare FSA if you are single or if you are married and file a joint tax return. When you establish a Dependent Daycare FSA, you may file for reimbursement of eligible expenses up to the current balance in your account, not the total amount you have agreed to set aside for the year.

Healthcare FSA Contributions
The maximum Healthcare FSA contribution for a plan year is $5,000. When you establish a Healthcare FSA, the full amount you agree to set aside for the plan year is available to pay eligible expenses on the first day of the plan year.

To participate in either type of FSA, you must complete an enrollment form each plan year.

FSA Administrator
Both the Healthcare and Dependent Daycare FSA’s are administered by Vantage Financial Group Plan Services. You can call Vantage at (1-877-289-0448) to get facts about your flex account and ask questions about covered expenses.

Call Vantage for instructions or visit their website at www.vfgps.com. login: csu password: csu.