If, at the end of the year, I have $0 left in my Health Care Account, $50 in my Child Care Account and medical expenses of $50, may I use the funds in the Child Care Account to get reimbursed for the medical expenses?
(Q) How do I request reimbursement from any of my Accounts? Top
(A) Please refer to the “Claims Processing” section of this website for complete details concerning withdrawals.
(Q) How long will it take to make a withdrawal? Top
(A) Reimbursement requests are processed on a daily basis. It will generally take one day plus mailing time or two business days for direct deposit into a checking account.
(Q) When can I submit requests to withdraw money from my account? Top
(A) You may request reimbursement at any time. However, many participants accumulate a number of bills and submit them all at once.
(Q) Do I have to submit all requests for reimbursement before the end of the plan year in order to clean out my account? Top
(A) No. You will have up to 90 days after the end of the plan year to make requests for reimbursement.
(Q) If, at the end of the year, I have $0 left in my Health Care Account, $50 in my Work-Related Dependent Care Account and medical expenses of $50, may I use the funds in the Dependent Care Account to get reimbursed for the medical expenses? Top
(A) No. Funds may not be transferred between accounts. Careful estimates should be made at the beginning of the year for each different type of expense.
(Q) I was billed $100 in March for my surgery last October. Can I be reimbursed for this with this year’s money? Top
(A) No. Reimbursements are made based on your date of service, not when you paid the bill. In this case, you would be reimbursed with money from the prior year, if you have any available, because that is the year you incurred the expense.
(Q) I have dental insurance but my dentist makes me pay a portion of my bill at the time of service. Can I get reimbursed for what I have paid? Top
(A) Not immediately. Where you are responsible for a percentage of the expense, before we can reimburse you, you must first submit these types of expenses to your insurance company. Your insurance company will then send you a summary of the claims you submitted indicating what amount, if any, they have paid. This is known as an “Explanation of Benefits” (EOB). We need a copy of this EOB in order to reimburse you.
(Q) What kinds of over-the-counter items can be reimbursed? Top
(A) You must first obtain a Note of Medical Necessity (NMN) or a prescription from your doctor in order to be reimbursed for over-the-counter medicines. You can continue to use your FSA funds to purchase over-the-counter items that are not considered a drug or medicine (i.e. bandages, wound care, contact lens solution).
(Q) What documentation do I need to submit for reimbursement for orthodontia? Top
(A) If your employer’s plan limits reimbursement to a down payment with monthly installments, you will need to first submit a copy of the orthodontic agreement. You will then need to submit either a copy of the payment coupon or a receipt showing what you owe (or paid) for that month.
(Q) Can I use my health FSA to pay for my child’s expenses? Top
(A) Parents may be reimbursed tax-free for their child’s medical expenses through the calendar year in which the child attains age 26, even if your child is not your tax dependent. This means you can use your FSA to pay for your child’s medical expenses even if your child is not living with you, is married or is working.
(Q) What happens after my child attains age 26? Top
(A) A child over age 26 may generally be considered your dependent if you provide over 50% of the child’s support. In this scenario you could use your health FSA for their qualified expenses.
(Q) Who qualifies as my child for these purposes? Top
(A) The IRS defines a child as your son, daughter, stepson, step-daughter as well as a legally adopted child, a child placed for adoption and a foster child.
(Q) My divorce decree requires that I reimburse my ex-spouse for childcare expenses incurred while we both work. I am not the custodial parent. Can I be reimbursed for work-related dependent care expenses? Top
(A) No. Only the custodial parent may be reimbursed tax-free for work-related day care expenses.
(Q) Are the claims for Work-Related Dependent Care expenses advanced just like claims for Health Care Expenses? Top
(A) No. Claims are reimbursed as monies are withheld and deposited into your Account. The dates of service must be incurred prior to reimbursement. For example, if you pay your child care provider on Monday for the entire week, the claim cannot be reimbursed until Friday, when the dates of service have been rendered.
(Q) What is the maximum amount I can elect to set aside for Work-Related Dependent Care expenses? Top
(A) $5,000 is the maximum if you are single or married and filing a joint tax return. $2,500 is the maximum if you are married and filing separate returns. However, your contribution may not exceed your earned income, nor your spouse’s earned income. This maximum is per family, per calendar year.
The spouse of a married employee is deemed to be gainfully employed and to have an earned income of not less than $250 per month ($500 per month if there are two or more qualifying individuals) in each month during which he or she: (a) is a full-time student; or (b) is incapable of self-care and has the same principal place of abode as the employee for more than half the year.
*Please note, in the situation of divorce, only the Custodial parent may use this account.
(Q) Can Work-Related Dependent Care expenses be claimed for a qualifying child age 13 or over? Top
(A) Dependent care expenses are for a) children who have not attained age 13 or b) for children or spouses who are physically or mentally incapable of self-care.
(Q) Can I change my elected Work-Related Dependent Care amount during the Plan Year? Top
(A) Yes, but the reasons you can change your contributions are limited. If you have a change in cost, provider, or work status (i.e. full-time to part-time) you may make a change in election.
(Q) For my Work-Related Dependent Care expenses I can use the Federal tax credit on my tax return. Which is better, Flex or the tax credit? Top
(A) In general, if your total household income is less than $25,000, the Federal tax credit is better. Flex is probably better if your income is higher than $25,000. Flex may also be better because Flex has a lump sum limit of $5,000 for all Work-Related Child Care expenses regardless of the number of children. The Federal credit is a percentage of expenses.
(Q) Beyond my group insurance premium, do I have to put additional money into a Flex Account? Top
(A) No. Participation is optional beyond your group insurance premiums. However, if you do not use your flex account to pay for allowable expenses, you will be paying too much in taxes.
(Q) Will premiums for my group insurance plan(s) be reimbursed from my Account? Top
(A) No. Group insurance premiums are deducted tax free from your paycheck and immediately sent to the insurance company.
(Q) Can I elect to include premium contributions under my spouse’s employer’s group insurance plan? Top
(Q) Are all taxes avoided on earnings deposited to my Flexible Spending Account? Top
(A) Contributions deposited to a Flexible Spending Account are NOT taxable for Social Security, Federal and most State taxes. Local taxes depend on the municipality to which you pay taxes. City tax is generally not payable in Ohio. Your Social Security benefits may be slightly reduced because of participation in the program. At the end of the year, your W-2 will automatically reflect the appropriate reduction for amounts contributed to your Flexible Spending Account. NOTE: You should NOT list your Health Care election on your tax return.
(Q) What happens if I leave the company? Top
(A) All deposits to your account will end with your last paycheck. You may continue to submit requests for reimbursement for allowable expenses incurred during your period of employment.
(Q) Does everyone taking the group medical insurance automatically have their required contribution made tax-free? Top
(Q) Can I change my elected deposit amount during the Plan Year? Top
(A) Yes. However, the reasons you can change your contribution for Group Insurance Premiums and the Health Care FSA are limited. Permissible changes are primarily due to changes in eligibility. The following circumstances are examples of “life events” that may permit an election to be changed: marriage, divorce, death, birth, adoption, change of employment status that affect eligibility, or termination of employment. The change of election must be “on account of the event” and must also be consistent with the request.
(Q) What happens to amounts left over in my accounts if they have not been used during the Plan Year? Top
(A) Amounts not used during the Plan Year can not be returned to you. Amounts remaining in your Account (s) go back to your employer. This is an IRS rule. Your employer does not want you to leave any money in your Account. You will therefore need to carefully plan how much money you want to deposit each year so this will not happen. To help you use up all deposits for each year, you will receive an Account Statement approximately 30 days before the end of your plan year indicating if there is any money left in your Account to spend. You will then have time to use up the money before the end of the Plan Year.