Participating in an FSA plan can reduce your tax obligation, but it is important to realize that FSA plans are regulated by the Internal Revenue Service (IRS) and, therefore, are subject to requirements that neither your employer nor Educators Mutual can alter or ignore. Some of those requirements are listed below. For more information, see IRS publications 502 and 503, available on the IRS website.
Only eligible expenses that are incurred during the plan
year are reimbursable. If the treatment
or services are received prior to the beginning of the plan year, they do not
qualify for reimbursement, even if you paid for those services during the plan
year. The date of service (not payment) is the date that goes on the
reimbursement form.
Reimbursement forms must be signed and filled out completely,
including a description of services for health care claims and the provider’s
social security number or TIN for dependent care claims.
Appropriate supporting documentation, as listed on
the reverse side of the reimbursement form, must be included. The following
forms of documentation are not acceptable:
·
duplicate checks or copies of checks
·
credit card receipts or statements
·
store receipts for prescriptions (Prescription
stubs/receipts or signed pharmacy printouts are acceptable.)
To receive reimbursement for orthodontic expenses,
provide Educators with a copy of your orthodontist’s contract and instructions
on whether you would like payment in one lump sum or in automatic monthly
payments (specify an amount). If you choose monthly payments, make certain that
the full amount will be reimbursed by the end of the plan year in which the
bands are removed.
The IRS regulates what expenses are eligible
for reimbursement. The following are just some of the items that are not
eligible:
·
cosmetic procedures including, but not limited to, teeth bleaching or
whitening and veneers
·
weight-loss programs or drugs, if the purpose of the
weight control is to maintain general good health (To be eligible, the
weight-loss program must be undertaken at a physician’s direction to treat an
existing disease, such as heart disease.)
·
massage therapy, unless it is to treat a specific medical diagnosis
from an MD
If you have questions about whether a procedure or supply is eligible for reimbursement, please contact Educators’ FSA department with a complete description of the item in question (including specific procedure codes from your physician or dentist if applicable).
Any funds remaining in your FSA accounts that are
not used to reimburse eligible expenses for the current plan year may not be
carried over to the next plan year, but are forfeited to your employer
(not Educators Mutual).
Funds may not be advanced from a future plan year to
pay for expenses incurred during the current plan year. Selecting the advance
payment option on your reimbursement form only applies to contributions
anticipated through the end of the current plan year.
For
more information, call Educators Mutual’s flexible spending department at (801)
262-7476 or toll free at (800) 662-5850.
em.gm.fsa-facts.0302.1647