Flexible spending accounts

Flexible spending accounts (FSA) allow employees to set aside pre-tax dollars to cover the costs of qualified healthcare expenses and/or dependent care services. They are a lot like savings accounts but used for certain eligible expenses. Accounts work on an annual plan year basis and are funded through bi-weekly payroll deductions.

Funds are subject to a use-it-or-lose-it rule. The IRS rule states that any remaining funds in an FSA at the end of the plan year must be forfeited, unless the plan has a grace period. Lynn's plans have a two-month and 15-day grace period immediately following the end of each plan year. This allows employees to use remaining funds for payment or reimbursement of eligible expenses incurred through the grace period.

Certain IRS rules apply to FSAs:

• All regular full-time employees are eligible; you do not have to be enrolled in a medical or dental plan to participate.
• Contributions are elected on an annual basis. Annual elections cannot be changed during the year unless you experience an IRS—defined change in status.
• Your health care FSA annual election amount is available to spend from Jan. 1. The funds can be used in their entirety prior to your annual pledge being deducted from your paycheck on a biweekly basis.
• You must enroll each year in order to participate—you are not automatically enrolled each year.
• In order to be reimbursed from your account, the expenses you claim must be eligible under IRS regulations, incurred during the plan year or grace period (Jan. 1 through March 15 of the following year), and submitted by the following March 31.
• If you wish to continue to participate (incurring eligible claims) while on leave without pay, you must make your regular contributions on an after-tax basis.
• Each plan has a contribution maximum as defined by the IRS.

After enrollment, you will receive a debit-type card that allows you to pay for services from your account. You can use the card at the time of service or request reimbursement. Keep your receipts each time you use your account, as you may receive a request to validate your purchases.

You can use your account for qualifying health care expenses for you, your children and your spouse—even if you are not covered by Lynn's health plans. Health care expenses for your same-sex spouse are reimbursable only if your same-sex spouse also qualifies as your dependent for federal tax purposes.

Qualifying healthcare expenses are those you have incurred that are not paid by your medical, dental or vision plan. These include, but are not limited to:

• Deductibles, coinsurance, co-pays
• Prescription and over-the-counter medicine
• Contact lenses, eyewear, and eye care supplies
• Orthodontia expenses

Contribution limits and a complete HCFSA eligibility list can be found at myameriflex.com.

If you have dependent care expenses for your child(ren) under 13 or a disabled adult family member, you can enroll in the DCFSA and experience tax savings on expenses like daycare, elderly care, summer day camp, preschool, and other services that allow the employee to work full time.

This plan does not allow reimbursement for dependent care services until they have been incurred. If your dependent care provider bills in advance for future services, you will need to wait until that billing period has passed before you submit your claim.

Qualified dependents for DCFSA are:

• Your dependent child(ren) under 13 must be your “qualifying child” tax dependent as defined by the IRS, or if there has been a divorce or other legal separation of parents, you must be the custodial parent
• Your spouse, who is physically or mentally incapable of caring for themselves and spends at least eight hours a day in your home
• Any other person who is physically or mentally incapable of caring for themselves, spends at least eight hours a day in your home and is also your tax-dependent child for whom you are the custodial parent

More information on eligible expenses and contribution limits can be found at myameriflex.com or check with your tax advisor if you have questions about whether a certain expense is eligible for reimbursement under this program.

For additional information about reimbursement accounts, contact Ameriflex at +1-888-868-3539 or visit myameriflex.com