FSA Frequently Asked Questions

Flexible Spending Accounts (FSAs) are regulated by the IRS and sponsored by your employer to allow you to pay for eligible expenses with tax-free money. Contributions made through FSAs are normally free of federal, state and social security taxes.

 

Frequently Asked Questions

 

Dependent Daycare Questions

 

Debit Card Questions

 

Verifying Expenses

 

 

How will I benefit from using a Flexible Spending Account?

With a Flexible Spending Account, you pay for eligible healthcare and dependent daycare expenses with tax-free dollars. You won’t have to pay federal, social security or most states’ taxes on the money you put into the plan. The more you use your plan, the more money you save. Your exact savings will depend on your personal tax rate.

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How does the plan work?

You select the amount that you would like to put into your healthcare account based on your needs for the coming plan year. Chard Snyder and your employer will let you know the maximum allowed amount. Tax-free money from your paycheck will then be added to your account. You may use your Benny® pre-paid benefit card if your plan allows or pay for eligible healthcare expenses and then submit a claim for reimbursement.

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How do I enroll?

Eligible employees will either enroll online or complete and turn in an enrollment form during the open enrollment period prior to the beginning of each plan year. During enrollment you will elect the amounts that you would like to contribute to your healthcare and dependent daycare accounts. 

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Can I change the amount I am contributing during the plan year? 

Generally, you cannot change the elections you have made after the beginning of the Plan Year. However, there are certain limited situations when you can change your elections. These situations are defined by the IRS and outlined in the plan's Summary Plan Description (SPD). Please see your Human Resources Department for a copy of the SPD and to submit a qualified change of status request to change your election.

You are permitted to change elections if you have a "change in status" and you make an election change that is consistent with the change in status. Currently, Federal law considers the following events to be a change in status:

You may be reimbursed for expenses for any child until the end of the calendar year in which the child reaches age 26. A child is a natural child, stepchild, foster child, adopted child, or a child placed with you for adoption. If a child gains or regains eligibility due to these new rules, that qualifies as a change in status to change coverage. 

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How do I receive reimbursements?

You can fax, email or mail claim forms and supporting documentation to Chard Snyder or you can submit your claim online through the participant portal. Supporting documentation can be a receipt, a bill, an explanation of benefits summary or any documentation that provides the date of service, the type of service, the service provider’s name and the amount. After the claim has been reviewed and the expense approved, payment is then issued to you via direct deposit or check. Most reimbursement checks are received within two weeks depending on your plan’s payment option. Click here for complete instructions for submitting an FSA claim.

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What is an eligible expense?
An eligible expense is any healthcare or dependent daycare expense approved by the IRS for reimbursement through the plan. These eligible expenses are often the same expenses allowed for income tax return deductions. Please note that expenses reimbursed through a Flexible Spending Account cannot be itemized and resubmitted through an income tax return and you may not use your debit card or be reimbursed for expenses that occurred before the beginning of the Flexible Spending Account plan year. Eligible expenses include items and services incurred by the participant, their spouse and any eligible dependents. You may not use your Flexible Spending Account for pre-payment of services. Please click on one of the following links to view a list of eligible expenses for each type of Flexible Spending Account:

You may access the complete and up-to-date list of eligible items in the EBIA Healthcare Expenses Table by logging in to your account through the My Account Login button above and looking under the Resources tab.

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What happens to funds at the end of the plan year?
Check your plan rules for possible claims deadlines. Most plans allow you to continue to submit claims for purchases and services that you have already incurred. This period of time is called the runout period. Some plans may allow you to continue spending through a Grace Period or Carryover. Please see your Summary Plan Description (SPD) or contact your Human Resources Department or Chard Snyder if you have questions about the details of your plan.

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Do I enroll each plan year?
Yes. The amounts that you have elected to contribute are for the duration of the plan year in which they are made. New enrollment forms must be turned in and new elections made each plan year.

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What happens if I become ineligible for the plan?

Before the end of your plan year you should use up the money that was in your account at the time of the change. You may not continue to add money to the account. 

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What if I quit or lose my job?

Check with Chard Snyder to find out the requirements of your plan. Use one of the following methods:

You may submit claims for daycare expenses from before the date you left your job.

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If I forget to submit a claim what happens?

You must submit your claims within the time allowed by the plan. Chard Snyder will be glad to tell you your deadline.

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What does Chard Snyder do with any unused funds in my account?

Any unused funds remain with your employer per IRS guidelines.

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How is the plan regulated?
In addition to regulations brought forth from Section 125 of the Internal Revenue Code, Flexible Spending Accounts are also regulated in part or in whole by the following entities and legislation:

Please contact our office with any questions about plan regulations.

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Who do I contact for more information?
If you require any assistance with your Flexible Spending Account, then please contact us.

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Dependent Daycare Questions

 

Which dependents are eligible?

Your natural, adopted and foster children who have not reached their 13th birthday and family members who cannot care for themselves are eligible. All dependents must live with you for more than half the year and be claimed on your federal tax return.

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Is there a special rule for divorced parents?

Yes. The parent designated as the custodial parent may use the dependent daycare plan even if the other parent claims the child as a tax dependent. If the dependent lives with both parents for the same amount of time per year, the parent with the highest adjusted gross income may use the plan.

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How much may I put in the dependent daycare account?

The most a household may set aside is $5,000 a calendar year. Married couples filing separate tax returns may each set aside up to $2,500 each calendar year.

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What are the IRS rules about changes?

The IRS says that you may change the amount you put into the plan in the following cases:

Your Human Resources office will need to approve any changes to your plan.

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May I pay my teenager or spouse to watch my younger child?

No. Your babysitter may not be your spouse or your tax dependent under the age of 19.

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How will I be repaid for my expenses?

You can submit a claim form and receive a check or direct deposit payment. If your plan allows, you may use the Benny™ prepaid benefit card.

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When should I submit my claim?

You may submit your claim at any time during your plan year. Your claim will be paid after the care has been provided. For example, if you pay on the first of the month in which care is to be provided, you may submit a claim each week, every two weeks or at the end of the month and you will be reimbursed for the care your dependent has received.

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Is there a limit to how much I can ask for?

You may only receive the amount of money that is in your account when you submit your claim. If for example, you submit a claim for $200 and you have a balance of $160, you will receive payment of $160. The remaining $40 will be sent when more money is added to your account.

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Debit Card Questions

 

Do I have to use the Benny® prepaid benefit card or can I submit claims and be reimbursed?

You may submit claims and be reimbursed. The card is a convenience but you are not required to use it.

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If I make a purchase without my Benny® prepaid benefit card, how do I submit a claim for reimbursement?

You have several options including mail, email, and online claim submission. See details on how to submit a claim here.

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May I use Benny® if I receive a statement due for a medical service?

As long as the date of service is within the plan year, you have enough money in your account to cover the balance due, and the provider accepts MasterCard, you can simlpy write the card number on the statement and send it back to the provider or call the provider and give them the card number and expiration date (MM/YY) over the phone.

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Can I use the Benny® prepaid benefit card to access last year's money left in the account this year?

This depends on your specific program. Check with Chard Snyder or your human resources department for deadlines and ways you may use last year’s money.

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What happens when my employment is terminated or I resign?

Card privileges are closed when we receive notification of a termination or resignation. You may continue to submit claims for purchases and services that were incurred before your termination or resignation.

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Verifying Expenses

 

I was informed that there would be no paperwork needed with this card. Why did I just receive a letter asking for information?

A high percentage of transactions are automatically approved. The IRS requires you to save all your receipts in this program in case you are audited. The IRS requires Chard Snyder to verify expenses and you may be asked to submit copies of your itemized receipts to verify that your expenses comply with IRS guidelines. If the Benny™ prepaid benefit card system cannot verify that the expense meets IRS guidelines, Chard Snyder will ask you to submit copies of your itemized receipts.

Each receipt must show the merchant or provider's name, the service received or the item purchased as well as the date of the expense/service and the amount paid. Handwritten notes, Credit Card transaction receipts or previous balance receipts cannot be used to verify a transaction.

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Why was my transaction selected for an audit?

When you use your Benny™ to pay for services from a medical provider such as a hospital, clinic, doctor or dentist, you may receive a letter from Chard Snyder asking you to provide paperwork to verify that your claim was for an eligible expense. For example, the IRS requires us to confirm that you went to the dentist for a check-up and not for teeth-whitening, and that the date of service occurred within the time period covered by your plan.

Many vendors code over-the-counter merchandise such as bandages and prescriptions so that Benny™ recognizes them at the cash register. This is known as the IIAS system and these purchases do not require further approval.

Some vendors choose not to participate in the IIAS system but are certified so that you may use the card. When you use the card at certified vendors you will receive a letter from Chard Snyder asking for copies of your receipts.

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Can I have my provider send you the information you are requesting?

Yes. Please make sure the provider includes the card holder’s name and their employer so that we can match the information to your account. We also recommend that you obtain a copy of the information for your file in case you are audited by the IRS.

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Why can’t Chard Snyder call the provider and ask for the information that is needed?

It is the card holder’s responsibility to send us this information when requested. We cannot contact the provider on your behalf due to HIPAA regulations.

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I looked at my account online and I see where it states YOUR ACCOUNT REQUIRES ATTENTION – You have debit card transactions that need receipt verification. Do I need to submit something at this time?

No. When documentation is needed for review, you will receive a letter from us, either by email or mail, asking for the information that is required. If you do not receive a letter, you will not be required to send us any information.

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What if I fail to submit receipts to verify a charge? What is the notification process?

If your claim needs to be verified, you will receive an email or letter from Chard Snyder requesting an itemized receipt, insurance explanation of benefits (EOB’s) or a itemized statement from your doctor or provider. If we do not receive a response, a second notice will be sent 30 days after the first. If we do not receive a response to the second notice, a Final notice will be sent 30 days after the second notice. Your Benny™ prepaid benefit card will be suspended the day the final notice is sent. In order to reinstate your card, you must provide the required records or repay the amount in question.

Note: The first letter is sent out to notify you that we need additional information once the system has reviewed all data feeds. This can occur in as little as one day, but can take as long as 120 days.

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What if I lose my receipt?

Usually the service provider can provide an account history or replacement receipt. If a receipt cannot be located or recreated, you will be asked to send a check or money order to Chard Snyder so the amount can be credited back to your account.

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Are there other letters that I may receive in this program?

There are two other letters that you may receive:

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FSA Infomation Video

FSAwoman
FSA Eligible Expenses and Items