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Health Insurance FSA What Is It
>> YOUR LINK HERE: ___ http://youtube.com/watch?v=sa5qMMS2ZZI
http://www.jsdowney.com • (Version 1.0) • UNDERSTANDING FSA PLANS • A Flexible Spending Account (FSA) is an employer-established, tax-advantaged account funded by the employee. • Flexible Spending Accounts (FSAs) have always been a great way for employees to budget for out-of-pocket healthcare expenses. Only an employer can open a Flexible Spending Account and the employee owns the account. Only the employee can make contributions to the account, with limits set by the employer and contributions are made through pre-tax payroll deductions. • Funds from this account pay for qualified medical expenses with pre-tax dollars. • This account does not earn interest and it won’t reduce health insurance premiums, but it can reduce the out-of-pocket health care expenses of the account holder and lower an employees’ taxable income. • As of 11/11/14, the Internal Revenue Service announced the following new benefit plan limits for 2015: • Flexible Spending Account (FSAs) Limits • • Healthcare FSA: The annual maximum for Healthcare FSAs has increased from $2,500 to $2,550 for 2015. • • Dependent Care FSA: At this time, the IRS has not released information on contribution limit changes to these plans. • • Transit Parking FSA: Contribution limits remain unchanged for 2015. The monthly limits are $250 for parking, $130 for transit and $20 for bicycle commuting. • • F.S.A. DEFINITION FROM HEALTHCARE.GOV: • A Flexible Spending Account is a special account you put money into that you use to pay for certain out-of-pocket health care costs. • You don’t have to pay taxes on this money. This means you’ll save an amount equal to the taxes you would have paid on the money you set aside. • You can use funds in your FSA to pay for certain medical and dental expenses, including copayments and deductibles. • FSA's are available only with job-based health plans. Employers may make contributions to your FSA. • You can’t spend FSA funds on insurance premiums. • NOTE: The Department of Treasury has modified its use-it-or-lose-it rule to allow a limited rollover of FSA funds. Up to $500 of unused FSA funds may now rollover to be used during the following plan year. The new rollover rule is an additional option to the existing 2½ month grace period allowance. Employers may offer the grace period or the rollover option, but not both. • As always, be sure to consult your CPA and Plan Administrator on the rules for limits, carry-overs, and allowable deductions for every plan year. • F.S.A. Summary: An employer sponsored benefit that enables employees to set aside pre-tax dollars out of their paycheck to pay for eligible health care expenses. Monies put into the plan avoid both Federal Income Tax and FICA. • A Flexible Spending Account (FSA) allows consumers to deduct pre-tax dollars from their paychecks and deposit those funds in employer-sponsored accounts to pay for medical expenses. Consumers then submit expense receipts to healthcare administrators for reimbursement. • What types of purchases are FSA-eligible? • In addition to standard healthcare expenses, such as doctor visits and prescription drugs, FSA funds can be used for many over-the-counter items including first aid kits, blood pressure monitors, contact lens solutions and supplies, and home medical aids. • The IRS sets the guidelines for FSA product eligibility and individual FSA plans have the final determination of which expenses are covered by their FSA programs.
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