FREQUENTLY ASKED QUESTIONS

What is a Flexible Spending Account Plan?
A benefit provided by your employer that lets you set aside a certain amount of your paycheck into an account before paying income taxes. Then, during the year you can be directly reimbursed from your account for qualified healthcare and dependent care expenses.

Why should I participate in the Healthcare Reimbursement Account when I already have health insurance?
This account is used to pay for expenses that are not covered by insurance. For example, your insurance may not cover annual physicals, co-payments, eye exams, eye surgery, glasses, orthodontics, prescription drugs, and hospital care.

If I set aside part of my pay, won't I make less money?
No. Your net take-home pay will increase by the amount of taxes you did not pay.

Can I change my contributions during the year?
Only if you have a change in status such as: marriage, birth, adoption, or a change in your or your spouse's employment status.

What if I currently take the dependent care credit on my annual tax return?
Whether to participate in the daycare portion of this plan depends on your income, filing status, number of dependents and annual daycare expenses.

The amount you deposit in your Dependent Care Reimbursement Account reduces the amount, dollar for dollar, that you can claim as a credit on your tax return. Contact your plan administrator for further information.

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