Q: When can I access the money I have directed into a Flexible
Spending Account (FSA)?
A: On the first day of your employer's plan year, you have full access
to 100% of the money you have directed to your Healthcare FSA for that
plan year. You have access to money directed to your Dependent Care
FSA only to the extent that funds have actually been withheld from
your wages and remitted to Benemax by your employer.
Q: How long do I have to use the money I direct into a Flexible
Spending Account?
A: You may use the money you direct into your FSA to pay for any qualified
expense that you incur during your employer's plan year. Your plan
includes a grace period at the end of that year to allow you to submit
claims for expenses incurred during the plan year.
Q: What happens to my money if I do not use all of it in the plan
year?
A: It reverts to your employer. Please note: this is an IRS requirement,
not a matter of employer policy.
Q: Can I carry forward money unused at the end of one plan year
to pay for expenses in the next plan year?
A: Unfortunately, no.
Q: Can I change my FSA election once the plan year begins?
A: Generally, no. However, certain changes in family circumstances
do permit you to make a change. For health care accounts, changes are
only possible if a change in family status directly impacts a covered
dependent's eligibility. For dependent care accounts, however, changes
are possible whenever a change in circumstances impacts an employee's
dependent care needs.
Q: Can the cost of transportation
be reimbursed under a Healthcare FSA?
A: Yes, provided the transportation is primarily for and essential
to healthcare.
Q: Can expenses for Cosmetic Surgery be reimbursed under a Healthcare
FSA?
A: No. Expenses for procedures such as hair transplants and electrolysis
are not allowed.
Q: Can a Health Care FSA reimburse payments made before services
are received?
A: Generally, no. The law requires the expenses to "be incurred" prior
to reimbursement. However, expenses for orthodontia may be reimbursed
as paid provided payment is based on a "reasonable" payment plan.
Q: Do I have to pay for an incurred expense before receiving reimbursement?
A: No.
Q: Can a Healthcare FSA reimburse me for expenses incurred after
my employment terminates?
A: Yes, but only if you elect to continue FSA coverage through COBRA.
Q: Is Radial Keratotomy a reimbursable expense under an FSA?
A: Yes. The IRS has ruled that this corrective procedure meets the
general definition of medical care.
Q: To participate in a Dependent Care FSA, do both employee and
spouse have to be employed?
A: Generally, yes. However, the definition of "gainfully employed" has
been expanded to include spouses who are unemployed but looking for
work, spouses who are self-employed, spouses who are full time students
and spouses who are disabled.
Q: If I pay a summer day camp deposit in advance, when can I be
reimbursed?
A: Expenses can only be reimbursed when that expense has been incurred
(i.e. service has been provided). You would receive reimbursement when
the child attended camp.
Q: If I have both a Dependent Care and Healthcare FSA, can I use
funds from one account to reimburse me for expenses from the other
account?
A: No. Funds allocated to each account may only be used for qualifying
expenses for that specific account.
