Flexible Spending Account (FSA)

IRS Regulations require that unused amounts be forfetied. The funds are returned to the Plan and are typically used to offset costs of administering the Plan. It is impermissible for the employer to return the funds to participants.

Eligible health care expenses are based on the interpretation of Section 213 (d) of the IRS code. As such, you will never find an all-inclusive, definitive listing of eligible expenses. The IRS defines eligible expenses as, "Amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any part or function of the body. The medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness.”  

For more information, you can visit the IRS website, www.irs.gov. For a partial listing of eligible expenses, you can go to FSA Eligibility List | Find & Buy FSA Eligible Items - FSA Store | FSA Store

Yes, you can use the funds to reimburse eligible expenses for any qualified tax dependent of yours, even if not covered by your employer’s health plan.

No, expenses must be incurred during the current plan year. The only exception to this rule is orthodontics. You can use your FSA to cover payments made for braces, even if the braces were put on before the start of the current plan year. If the treatment plan is ongoing, you can submit expenses for the current plan year.

You will have a specific amount of time, called the run-out period, during which you can submit claims that were incurred prior to your termination date. You employer determines the run –out period. You may not be reimbursed for any claims incurred after your termination date. However, you may be able to continue your Health Care FSA coverage under COBRA.

There is no amount that will be right for everyone. FSA elections vary greatly, depending on the individual participant and his or her particular situation. You should make your election by carefully examining your expected out of pocket health care expenses for the upcoming year.

Yes, you can request up to four debit cards for your family. You will automatically be sent two cards, and you can request additional cards via our website, mycpiteam.com.  A fee may apply for additional cards.

No, you can use the Dependent Care FSA to cover expenses for anyone who watches your children while you and your spouse are working. It can even be a family member, as long as that person is not your tax dependent. The only rules that apply are that you must provide the Social Security number or Tax ID of your daycare provider, and that person must claim the income, a fee may apply.

No, the regulations state that care must be rendered so that both you and your spouse can be gainfully employed, look for gainful employment or attend school.

No, you can use funds only for the purpose for which the election was initially made. IRS regulations do not allow funds to be transferred or commingled between accounts. So, the money in your Health Care FSA may only be used for health care expenses and your Dependent Care FSA may only pay for dependent care expenses.