Like the Tax Saver plan, the Flexible Spending Accounts (FSA) benefit allows benefits-eligible employees to pay for additional qualified expenses before taxes are taken out of your pay. You may enroll within 31 days of becoming a benefits-eligible employee or during the annual College-designated open enrollment period in two types of Flexible Spending Accounts: The Health Care Spending Account and the Dependent Care Spending Account. For both accounts, you must estimate the amount of your unreimbursed expenses for the plan year (July 1 to June 30). These estimates are deducted from your paychecks over the year on a pre-tax basis. You then submit receipts for eligible expenses to our third party administrator to receive reimbursement from your accounts.
Eligible health care expenses include, but are not limited to, out-of-pocket medical, dental, vision and hearing expenses, as well as prescription drugs, certain over-the-counter medications, medical insurance deductibles and insurance co-payments for you or any member of your immediate family, regardless of whether or not they are covered by an Ivy Tech insurance plan.
Eligible dependent care expenses include care for children under age 13 that is necessary in order for you to work. With the exception of dependent care centers, child care providers do not have to be licensed, but they must be claiming earnings for taxation purposes and provide you with a receipt. However, dependent care centers (providing care for more than six individuals) must comply with all applicable state and local laws, including applicable licensing requirements.
When estimating your expenses, please be conservative with the dollar amounts you set aside in these accounts. If, at the end of the plan year, there are any unclaimed dollars in your accounts, this amount is subject to the IRS's "use it or lose it" rule. Any such unclaimed money will be forfeited if you do not spend the entire amount you have allocated. If you have expenses, please do not let this intimidate you from participating. Simply look at expenses you know you will incur and estimate conservatively. Elections for Flexible Spending Accounts are irrevocable during the plan year unless a change is permitted under the terms of the Plan. See the permitted election change discussion under the Tax Saver Program above.
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