Flexible Spending Accounts

ADP Benefit Services administers our Flexible Spending Account plans. Use your alternate ID number when filing claims for eligible health care and dependent care expenses. Your 10-digit alternate ID number is available on your pay stubs.

What is it?

Flexible Spending Account Plans allow you to set aside a portion of your pretax salary to pay for certain dependent care or health care expenses that are not otherwise reimbursed. There are two Flexible Spending Accounts:

Who can participate?

Employees and their eligible dependents do not need to be covered by the company medical plan in order to participate in flexible spending account plans. Flexible spending accounts are funded through reductions in your compensation, which are then credited to separate plan accounts for your benefit. These accounts are retained by the company until you submit claims for reimbursement.

Why participate?

With a little planning, employees taking advantage of this program can pay less in taxes and have more spendable income. The HCSA is an excellent way to save for those predictable, out-of-pocket medical expenses, such as prescription drugs, eyeglasses, orthodontia or doctor office visit copays. One of the largest expenses for many families is dependent care expenses. Take a few minutes to add up your dependent care expenses and complete the tax advantage worksheet (PDF) to see how much you could save.

You may submit claims at any time by mail or fax. Please allow five business days for HCSA claims to be processed before the reimbursement is released. DCSA reimbursements are released at the end of the time period in which expenses were incurred. Log on to the ADP Benefit Services Web site to register for direct deposit into your personal savings or checking account or have claim checks mailed to your home. Due to banking requirements, direct deposit funds will be available for withdrawal from your account after 48 hours from the date they are deposited.

Contributions

The Health Care Spending Account plan allows you to set aside up to $5,000 pretax each year for qualifying health care expenses.

The Dependent Care Spending Account plan allows you to set aside up to $5,000 pretax each year for qualifying dependent care expenses.

Important Note: Estimate conservatively when deciding how much to set aside. Due to IRS regulations any money left in the account at the end of the Plan Year must be forfeited.

The election amount you choose during enrollment cannot be changed unless there is a qualifying life-changing event. You have until March 31 of the next year to request reimbursement for eligible expenses incurred during the Plan Year. If you terminate participation in the Health Care or Dependent Care spending account plans at any time during the year, whether because of your termination of employment or the occurrence of a life-changing event or otherwise, you may still submit a claim for reimbursement of eligible health care expenses after your participation ends. The expenses must have been incurred prior to termination of your plan participation and they must be submitted for reimbursement within 90 days of termination of your plan participation.

Because flexible spending accounts provide a unique opportunity to reduce your taxes, certain Internal Revenue Service (IRS) requirements apply which limit the amount you can deposit into your account. Refer to IRS Publications 502 and 503 at www.irs.gov.

How do I enroll?

To participate in the Flexible Spending Account plans, employees must complete the Flexible Spending Account section of their benefits enrollment form when they are first eligible or later during the annual open enrollment period. Employees choosing to continue participation from year to year are required to re-enroll into the plan and elect contribution amounts each year during open enrollment.

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