How Does the Beniversal FSA Work?
The Beniversal FSA provides convenient and seamless access to your Flexible Spending Account by combining the Beniversal Prepaid MasterCard®, online and mobile account access and personalized service options. The Beniversal Card The Beniversal Prepaid Mastercard provides you with real-time access to your account funds to pay for eligible health care expenses. Benefit Resource uses information from the […]
If I terminate employment, can I receive a refund for the cash balance remaining in my FSA?
No. IRS regulations do not allow this.
What happens if my employment terminates before the end of the plan year?
Your Medical FSA will terminate as of the date your employment terminates. Eligible medical services provided prior to your date of termination will still be eligible for reimbursement, but services provided after the date of termination will not be eligible unless you are eligible for and elect to continue coverage under COBRA. See additional information […]
Will my FSA election automatically continue after my current plan year ends?
No. You must enroll again before the beginning of each new plan year. This gives you a chance to change your election each plan year as your circumstances change.
If I elect too much for my FSA during the plan year and cannot use it, what happens to the extra funds?
Refer to your Plan Highlights regarding unused FSA funds. Any forfeited funds are returned to your employer, but the IRS has imposed strict regulations on the use of these funds (they cannot be refunded to the employees who forfeited them). Employees should be conservative when estimating the amount to elect for an FSA.
Can money in a Medical FSA be used for a Dependent Care FSA?
No. Money directed to one type of Account can be used only for expenses relating to that Account. This is true even if all the money in one Account is not used and the other Account runs short.
Are expenses eligible if services are provided prior to my effective date in the Plan?
No. Services must be provided on or after your effective date.
Who is responsible for determining if an expense is eligible?
Eligibility of expenses is dictated by the IRS and those guidelines are used by Benefit Resource. The services of an attorney are utilized if an additional opinion is needed or research is required to clarify the eligibility of an expense.
What dollar amount is available in my FSA?
The amount available for a Medical FSA = the total amount you elected for the current plan year minus any prior payments and reimbursements. The amount available for a Dependent Care FSA = the total payroll deductions posted to your Account for the current plan year minus any prior payments and reimbursements.
Since I will not pay Social Security taxes on money contributed to an FSA, will my Social Security benefits be lower when I retire or if I become disabled?
Tax-free contributions may slightly reduce your Social Security benefits. However, the value of your tax savings with an FSA should more than offset the slight reduction in Social Security benefits in future years.
What employee taxes are eliminated by contributing to a Medical or Dependent Care FSA?
You will not pay federal income tax, Social Security tax and most state taxes (varies by state) on contributions to a Medical and/or Dependent Care FSA.
What is the advantage of enrolling in an FSA?
Enrolling in an FSA allows you to make tax-free salary contributions to pay for eligible medical and dependent care expenses that are not covered or reimbursed by any other source. FSAs increase your take-home pay by reducing taxable income, making these out-of-pocket expenses more affordable!
