Tax Advantage Accounts
Health Care Flexible Spending Account
A health care Flexible Spending Account (FSA) is designed to help you use pre-tax payroll contributions to help you pay for most medical, dental, prescription, hearing and vision expenses not covered by other health care plans for you, your spouse and your eligible dependents. To take advantage of a health care FSA, you can be enrolled in the Premium PPO Plan, Standard PPO Plan or other coverage (i.e. HMO or coverage through spouse).
FSA: Use It or Lose It
Tax advantage accounts have certain tax advantages. Therefore, the IRS regulates all tax advantage accounts. By law, any funds not used for services during the year will be lost. In other words, you need to use the money in your account or you'll lose it. See the www.irs.gov website for the complete list of qualified expenses, Publication 502.
Changing your health care FSA contribution amount mid-year can only occur if you experience a qualifying status change. Contact Farm Credit Foundations for more information.
Amount Available for Reimbursement
Your total annual health care contributions are available to be reimbursed at any time during the year. For example, if your claims exceed the balance in your health care spending account, you will be reimbursed up to the total amount you have elected to deposit for the year, regardless of the amount you have contributed at the time you submit your claim. Save your receipts. You may have to show the IRS the expense was qualified.
Using Your Visa Debit Card for Health Care FSA
You will receive a debit card when you enroll in the Health Care FSA. You can use your debit card for FSA expenses at most pharmacies and physician offices wherever Visa debit cards are accepted.
Health care claims may be substantiated at time of checkout. If approved, you will be paid up to the plan year contribution amount you have elected – even if you do not have those funds yet available.