Flexible Spending & Health Reimbursement Accounts
Flexible Spending Accounts (FSAs) are voluntary plans that enable active employees to save money by paying for certain health care and dependent care expenses using pre-tax pay. The Niagara Falls City School District oﬀers two special tax-savings accounts to eligible employees – Health Care FSA and Dependent Care FSA. Enrollment in FSA is not automatic. You must re-enroll each year during the Open Enrollment period. If you are not eligible for benefits, you cannot enroll in Flexible Spending Accounts.
How the Accounts Work
We all have some expenses that qualify for an FSA, so why not take advantage of this IRS approved tax break? When you enroll, you decide how much of your pay to set aside in the Health Care FSA and/ or Dependent Care FSA. The money you elect to set aside is deducted throughout the year from your pay before Federal income, State income, and Social Security taxes are calculated. When you have an eligible expense, you pay for the expense and file for reimbursement from your FSA account. You are reimbursed with your own money from the appropriate account, and the money remains untaxed. In other words, you never pay taxes on the money that flows through your FSA(s). The District pays the full cost of administering these FSA accounts.
• As soon as you have an eligible health care expense, you can file a claim for reimbursement. There’s no need to wait until the money is in your Health Care FSA. As long as the total claims for the year have not exceeded your annual election, your eligible claim will be processed immediately.
- The reimbursement process for the Dependent Care FSA works a little diﬀerently than the Health Care As you incur and pay for eligible day care expenses, you may file for reimbursement. However, you can only be reimbursed up to the current FSA balance. If your request exceeds your account balance, the remaining reimbursement will be paid when the additional funds are deposited.
Flexible Spending Accounts
Medical FSA - Election of pre-tax dollars for out-of-pocket prescription, dental, vision and medical care. Expenses. Maximum yearly election $2,650 . Pre-funded in the beginning of the year.
Dependent Care FSA - Election of pre-tax dollars for Daycare or before/after school programs. Maximum yearly elections is $5,000. The annual amount elected is funded thru biweekly payroll deductions.
Other Important FSA Facts
The FSAs are governed by IRS guidelines, so keep these important rules in mind as you plan your participation in these accounts:
The FSA plan year runs from July 1st to June 30th. Under the Health Care or Dependent Care FSA, eligible expenses incurred during the year can be This means that you can incur expenses through June 30th and have 60 days from that date to submit for reimbursement. If you stop participating in the Health Care or Dependent Care FSA before June 30th, expenses incurred after the date participation stops are not eligible for reimbursement.
“Use-It-or-Lose-It” Rule: Any money remaining in your FSA accounts after the 60 day extension period has ended (August 30th of the year following the current calendar year) will be Estimate your future expenses carefully to protect yourself against forfeitures.
The accounts are Contributions made to the Health Care FSA cannot be transferred to the Dependent Care FSA or vice versa.
Finally, you should be aware that your participation in the FSAs may slightly reduce your future Social Security benefits, because your FSA contributions reduce your taxable income.
Once you enroll in an FSA for the calendar year, you may only make changes during the year if you have a qualified change in status such as marriage,divorce,legal separation,birth of a child, death of a dependent, change in employment status or work schedule,change in cost of coverage or change in spouse’s coverage.
**ALL FSA REIMBURESEMENTS MUST BE SUBMITTED TO M&T NO LATER THAN
60 DAYS AFTER THE BENEFIT YEAR ENDS OR YOU WILL LOSE IT**
Health Reimbursement Account (HRA)
Health Reimbursement Accounts are funded solely by the District, and are NOT funded through employee salary deductions.
HRA/DCA/FSA Reimbursement Form is used to submit eligible expenses for reimbursement.
Manage your accounts, check balances, etc at MyWealthCare Portal and review the Wealthcare Portal User Guide for information on using the Portal . Employee ID is SS#, no dashes & Employer ID is mtinfsd. You can also contact M&T @ 855-680-0897