The ratification of the TTA collective bargaining agreement as well as new IRS regulations has resulted in changes to the Benetech Flex Spending Account (FSA) available to Troy City School District employees. Changes include updates to the roll-over policy as well as the addition of a one-time employer contribution. Please see the following Frequently Asked Questions as a resource and guide to the FSA and these changes.
What is a Flex Spending Account?
A Flex Spending Account (FSA) is an employer-sponsored benefit that allows you to voluntarily set aside pre-tax dollars to pay for eligible health care costs including prescriptions, co-pays and various over-the-counter medications.
What is the benefit of a FSA?
Because you use pre-tax dollars, you reduce your taxable income, and consequently, your tax liability. You pay for your eligible expenses with tax-free money from your FSA.
How does it work?
- Estimate your eligible expenses for the upcoming year (health care and/or dependent care).
- Determine how much you want to have set aside from your pay to go into your FSA to pay for your eligible expenses for the coming year. This amount is called your “election.”
- The money you elect for your FSA will be automatically deducted from your paycheck on a pretax basis and credited to your FSA over the course of the year through payroll deduction.
- You will be issued a bank card from our third-party prescription drug provider, Benetech, which you will use to pay for eligible expenses.
What is the difference between the medical FSA and the dependent care FSA?
The medical FSA and the dependent care FSA are separate accounts for different uses. Money from one FSA cannot be used for the other account’s purpose.
- Sample health care FSA expenses: doctor’s office visits, physical exams, hospital care, prescriptions, etc.
- Sample dependent care FSA expenses: licensed daycare, elder care, preschool programs, etc.
What happens if I don’t use all the money in the account at the end of the year?
New this year, employees can roll over up to $500 of their election to the following year so long as they enroll in the FSA again that year. If you do not enroll again, you will forfeit that money.
TTA members enrolled in Prescription Drug coverage have two years to spend the employer contribution of $250.
Is there a minimum or maximum amount I need to contribute?
The minimum election to enroll in either the medical or dependent care FSA is $1. The maximum election for the medical account is $2,550. The maximum election for the dependent care account is $5,000 per household.
What is the $250 employer contribution?
With the ratification of the TTA collective bargaining agreement all TTA members enrolled in Prescription Drug coverage are entitled to a one-time $250 employer contribution to a medical FSA. TTA members need to be enrolled by July 1, 2017 to receive this benefit.
TTA members enrolled in Prescription Drug coverage have to spend the employer contribution of $250 by July 1, 2018.
Who is eligible for the $250 employer contribution?
All TTA members enrolled in Prescription Drug coverage are eligible for the $250 one-time employer contribution. Members who are not currently enrolled in Prescription Drug coverage must do so by July 1, 2017 to be eligible. All TTA members must complete the election form and agreement to be eligible.
Which is spent first – my election or the employer contribution?
When making eligible purchases, the $250 employer contribution is spent first. Once that money is depleted, purchases will be deducted from the employee election. Keep in mind that up to $500 of the employee’s election can be rolled over to the next Plan Year.
I’m already enrolled in a FSA – Do I need to fill out the form?
Yes. IRS regulation requires every eligible employee to fill out and sign the election form and agreement to receive the $250 one-time employer contribution. If you do not fill out the form, you will forfeit the $250. All dependents should be listed.
I am already have an FSA for this Plan Year. Can I roll over any of my unused election?
As long as you are a Troy City School District employee and you enroll again in FSA, you may roll over up to $500 of your unused election to the upcoming Plan Year.
Can I change my election during the Plan Year?
Generally, you may not change or vary your elections during the Plan Year. However, you may change your elections during the FSA annual enrollment period for the coming Plan Year. The Plan Administrator will advise you when you may elect or change your elections for the upcoming Plan Year. There is an important exception to this general rule: You may change or revoke your election at any time during the Plan Year if there is one or more of the following significant changes in your family status. Such changes include:
- Your marriage or divorce;
- Birth or adoption of your child;
- Death of your spouse or child;
- Termination of your spouse’s employment;
- Change in the employment status of either you or your spouse from full-time to part-time or vice-versa;
- An unpaid leave of absence by you or your spouse.