| FAQ:
Frequently asked questions 
• What is a Flexible
Spending Account Plan? • Why should I participate
in the Healthcare Reimbursement Account when I already
have health insurance? • If I set aside
part of my pay, won’t I make less money? • Can I change my
contributions during the year? • What if I currently
take the dependent care credit on my annual tax return? • How do I get reimbursed
for my expenses? • Do I have to wait
for the money to be deposited in my account in order to
make a claim for reimbursement? • How do I know how
much is available in my accounts? • What happens to
my accounts if I terminate my employment? • What if I am not
covered under my company’s health insurance plan? • How do I benefit
by participating? • Are there any
negatives that I should know about?
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.(top
of page) 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,
orthodontics, prescription drugs, or dental care, just
to name a few.(top
of page) 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.(top
of page) 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 spouse’s
employment status.
(top of page) 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.
(top of page)
How do I get reimbursed
for my expenses? Once you have completed the enrollment form,
you will receive a claim form and instructions on how
to file a claim. Simply complete the form, attach a copy
of the healthcare or dependent care bill, and mail your
form to the Plan Administrator. Within a short time, you
will receive your reimbursement.
(top of page)
Do I have to wait for
the money to be deposited in my account in order to make
a claim for reimbursement? The amount you set aside each year for the
Healthcare Reimbursement Account is available to you at
any time throughout the plan year. The amount available
to you from your Dependent Care Account is the amount
you have contributed to date.(top
of page) How do I know how much
is available in my accounts? Each time you receive a reimbursement check,
an attached statement will show the dollar amount you
have set aside, as well as the amount you have been paid
to date. You may also check your account status online
at www.125plan.info.(top
of page) What happens to my accounts
if I terminate my employment? You will be able to request a reimbursement
for healthcare and daycare expenses that you incurred
prior to your termination. Check your SPD for any additional
rights or benefits provided by your company’s plan.(top
of page) What if I am not covered
under my company’s health insurance plan? You and your family can still participate
in the Healthcare and Dependent Care Accounts.(top
of page) How do I benefit by
participating? Your biggest advantage is the tax savings.
Every dollar you set aside in your account reduces how
much you pay in income taxes. Plus, you can be reimbursed
for qualified expenses that you are already paying for.(top
of page) Are there any negatives
that I should know about? Yes, because you are not paying any social
security tax on that portion of your income that has been
set aside, your social security benefits may be slightly
reduced. Most tax advisors would tell you that the benefit
of saving taxes now will be far greater than the potential
loss of social security benefits when you retire.(top
of page)
4 NORTH PARK DRIVE, HUNT VALLEY, MARYLAND 21211 | 888.460.8005
customerservice@hfsbenefits.com |
