|
|
Medical/Dependent Care FSA
Flexible
Spending Accounts (FSA)
What is a Flexible Spending Account (FSA)?
The Medical Flexible Spending Account FSA(s) lets you take advantage of
tax services by participating in a FSA and electing a portion of your
pay to be deposited into an account on a pre-tax bases. An FSA lets you
budget and save for qualified medical expenses.
|
●
|
Your FSA funds are available to use at the start of the
plan year, which is January 1st. You can use your FSA to
pay for deductibles, co-pays, prescriptions, eyeglasses
or any other qualified medical expenses.
To view eligible expenses and other resources go to:
Discovery Benefits |
|
● |
You determine the annual amount you wish to contribute
to the account. In 2020, you can contribute up-to $2,700
pre-tax dollars to your plan. So plan ahead when
enrolling in an FSA
plan. You’ll first want to estimate how much you think
you’ll spend on qualified expenses throughout the year. |
|
● |
Remember the IRS has a “Use or Lose” rule in place for
FSA. Funds not spent by the end of the plan year which
is December 31st, are at risk of being forfeited.
Franklin Pierce elected a “carryover provision” meaning
you can carryover up-to $500 of unused funds from your
medical FSA which extends your deadline from December
31st to March 31st the following plan year. If you do
not use that $500 or less by March 31st, you will
forfeit it. So remember not to have more than $500 in
your FSA on December 31st and use whatever you carry
over by March 31st. |
|
● |
With the Discovery Benefits debit card, using your FSA
dollars has never been easier. It streamlines the
process of managing multiple benefits plans. You’ll
receive your one card when you enroll, and you can
request additional cards for your spouse and dependents,
18 years or older. |
|
● |
You can submit documentation within minutes using the
Discovery Benefits mobile app, available on Apple and
Android devices. The app is the quickest and easiest
method for filing claims and submitting documentation
for your FSA purchases because it lets you use your
phone’s camera to take pictures of documentation and
upload them on the spot.
|
|
● |
You can also submit documentation through your Discovery
website, fax or by regular mail. To submit
documentation through the website, log in and follow the
prompts. You’ll see in the “Receipt(s) Needed” menu
under the Home tab. |
|
|
Need to spend
down our balance but not sure what to use your funds on?
Discover the thousands of eligible FSA expenses at the
FSA Store and make purchases for FSA-eligible items
using your per-tax dollars. Go to:
|
|
|
|
Dependent Care Flexible
Spending Accounts
(DCFSA)
What is a Dependent Care Flexible Spending Account (DCFSA)?
A Dependent Care FSA (DCFSA) is a pre-tax benefit account used to pay
for eligible dependent care services, such as preschool, summer day
camp, before or after school programs, and child or adult daycare. It's
a smart, simple way to save money while taking care of your loved ones
so that you can continue to work.
|
●
|
Your DCFSA account allows you pay for dependent care for
children under the age 13 who are living with you and
you provide more than 50% support, or for your spouse or
a relative who is physically or mentally incapable of
self-care and lives in your home |
|
● |
In 2020, you can contribute up-to $5,000 in pre-tax
dollars to your DCFSA account. This can help you save
up-to 30% on dependent care services, in addition to
reducing your tax burden. |
|
● |
If you and your spouse are both eligible to contribute
to a DCFSA through your respective employers, you
together you cannot exceed $5,000. Expenses reimbursed
under your DCFSA may not be reimbursed under your
spouse's Dependent Care FSA and vice versa. |
|
● |
All your contributions, except $500 must be used by
December 31st. Franklin Pierce elected a
“carryover provision” meaning you can carryover up-to
$500 of unused funds from your DCFSA which extends your
deadline from December 31st to March 31st
of the following plan year. It’s important to estimate
how much you spend on eligible dependent care expenses
each year before you decide how much to contribute. You
will forfeit anything in excess of $500 after December
31st and you will also forfeit any remaining
funds you carried over on March 31st. |
|
● |
You can submit documentation within minutes using the
Discovery Benefits mobile app, available on Apple and
Android devices. The app is the quickest and easiest
method for filing claims and submitting documentation
for your FSA purchases because it lets you use your
phone’s camera to take pictures of documentation and
upload them on the spot.
|
|
● |
You can also submit your receipts through your Discovery
website, fax or by regular mail. To submit your receipts
through the website, log in and follow the prompt.
You’ll see in the “Receipt(s) Needed menu under the Home
tab. |
(866)451-3399
www.discoverybenefits.com
|
| |
| |
|
