• Home

Flexible Spending Accounts (FSAs) are part of an IRS regulated, employer-sponsored benefit plan that allows participants to voluntarily convert part of their compensation into tax-free benefits. Contributions made through FSAs are normally free of federal, state and Social Security taxes.

Frequently Asked Questions

How do employees benefit from participating in an FSA?
How does the plan work?
How do employees participate?
Can participants change elections during the plan year?
How do participants receive reimbursements?
What is an eligible expense?
What happens to the funds at the end of the plan year?
Do employees enroll each plan year?
How is the plan regulated?
Who do I contact for more information?

How do employees benefit from participating in an FSA?

FSAs benefit employees by allowing them to pay for certain healthcare and dependent daycare expenses with pre-tax dollars. Each dollar that goes into the plan is free from federal, state and (in most cases) FICA taxation.

[ Return to Top ]

How does the plan work?
The employer identifies who is eligible (i.e. all employees with over ninety days of service) within discrimination requirements, what the maximum contributions are for the plan (i.e. $5,000.00 for dependent daycare expenses), and the duration of the plan year (typically a period of twelve consecutive months). Each eligible employee elects whether or not to participate in the plan and how much to contribute. Those that participate receive pre-tax payroll-deductions and submit claims for reimbursement of expenses throughout the year.

[ Return to Top ]

How do employees participate?
Eligible employees complete and turn in an enrollment form prior to the beginning of the plan year. This annual "election" is divided into equal installments and is payroll deducted pre-tax each pay period. Participants can then submit requests and receive reimbursements for approved expenses incurred throughout the plan year.

[ Return to Top ]

Can participants change elections during the plan year?
Elections can only be changed if an employee experiences a qualified change of status as defined by the IRS and outlined in the plan's Summary Plan Description (SPD). Employees should see their Human Resources Department for a copy of the SPD and to submit a qualified change of status request in order to change their election.

[ Return to Top ]

How do participants receive reimbursements?

Participants can fax, email or mail claim forms and supporting documentation to Chard Snyder. Supporting documentation can be a receipt, a bill, an explanation of benefits summary and/or any documentation that provides the date of service, the type of service and the amount. After the claim has been reviewed and the expense approved, payment is then issued to the employee via direct deposit or a check. Claims are processed daily and payments are issued at least once per week. Click here for complete instructions for submitting an FSA claim.

[ Return to Top ]

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 an FSA cannot be itemized and resubmitted through an income tax return. Eligible expenses include items and services incurred by the participant, their spouse and any eligible dependents. Please click on one of the following links to view the complete list of eligible expenses for each of the FSAs:

• Eligible Healthcare FSA Expenses
• Eligible Dependent Care FSA Expenses
• Eligible Limited Healthcare FSA Expenses

[ Return to Top ]

What happens to funds at the end of the plan year?
Any unused amounts left in the accounts at the end of the plan year cannot be carried over into the next plan year. These funds are forfeited and are not available for reimbursements. Participants usually have a year-end grace period determined by the employer to allow for time to submit all claims.

[ Return to Top ]

Do employees enroll each plan year?
Employees' elections 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.

[ Return to Top ]

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

Department of Labor
Federal, State and Local Courts
Internal Revenue Service
Pension Welfare Benefits Administration
US Congress
COBRA
ERISA
FMLA
HIPAA
Section 104
Section 105
Section 106
Section 129
Section 152
Section 213

Please contact our office with any questions about plan regulations.

[ Return to Top ]

Who do I contact for more information?
If you require any assistance with an FSA, then please contact us.

[ Return to Top ]