What is a Limited expense FSA?

Photo by 401(K)2012 on Flickr.

A Limited Expense Flexible Spending Account is another type of pretax health account.

Only certain medical expenses are covered through a Limited Expense FSA unlike with a regular Health Care FSA. You are allowed to have a Limited Expense FSA if you have a Health Savings Account.

The Limited Expense FSA applies the same “use it or lose it” rule as the regular FSA does, so all funds must be used before the plan year ends. The maximum annual contribution is set to $2,500 for a Limited Care FSA for plan years beginning on or after Jan. 1, 2013. However, the contribution limit is on a per-person basis, so you and your spouse would both be able to elect $2,500. Check in with your employer about your plan’s limits and consult your Summary Plan Description for additional information.

Which care qualifies for a Limited Expense FSA?

• Dental Care
• Vision Care
• Preventive Care

Examples of covered dental/vision procedures and products include:

• Braces, exams, fillings, crowns, and cleanings.
• LASIK, multipurpose contact lens solutions, and eyeglasses.

Preventive care* could entail:

• Flu shots, child and adult immunizations.
• Periodic health exams (annual physicals).
• Tobacco cessation programs.
• Weight-loss programs.
• Certain screening devices and services.
• Routine prenatal and well-child care.
• Prescription OTC drugs (must be vision, dental or preventive).
• FSA eligible products (must be vision, dental or preventive).

*Preventive care does not generally include services intended to treat existing illnesses or injuries. Preventive care applies in situations where it is unreasonable or impracticable to perform other procedures to treat a condition. Using medications is part of preventive care when people developed risk factors of a disease or prevent reoccurrences of a disease. For example, taking cholesterol-lowering medications to prevent heart disease.

Browse the FSAstore.com Learning Center for extra information about Flexible Spending Accounts.

Transportation Reimbursement Accounts Savings

Can work-related commutes be reimbursed?

Back-to-back traffic. Delays on the bus or train.  Every morning you leave your house hoping you won’t run into the traffic gridlock, and you are not alone. For 600,000 people in America, 90 minutes of travel time over the span of 50 miles are a daily commute reality.

There are ways to make the commute a little less stressful…

If your employer offers a Transportation Reimbursement Account (TRA), also known as a Commuter Reimbursement Account, you will be able to save on commuting expenses on a pre-tax basis. Commuter benefits are meant to reduce traffic congestion by urging you to use public transportation. You can sign up for this benefit at any time.

Mass Transit – Transit passes for rail, bus or ferry are eligible. Transit passes include passes, tokens, fare cards, or vouchers that let people ride (on mass transit or in at least a six-person vehicle) at either a lower rate or freely.

 

 

Vanpooling (commuter highway vehicle) expenses are covered if minimum requirements are met. Mileage must at least be 80% for transportation to and from work. At least six employees and the driver must be in the van and half the seats occupied.

 

 

Qualified parking consists of parking near the workplace or close to a location from which employees commute to work either via transit, vanpool or carpooling.  Residential parking does not qualify.

 

 

Bicycle commuting - A tax-free bicycle benefit was added in 2009. Reimbursement for that is up to $20/month ($240/year) on qualifying expenses including bicycle purchases, repairs, improvements, and storage. The bike must be regularly used for commuting.

Contribution Limits

You can spend up to $245/month combined on both transit and vanpool expenses. You can also spend up to $245/month on qualified parking.

Not eligible for Commuter Benefits

• Fuel, tolls, mileage.
• Any non-work related travel (taxis)
• If you are self employed, you would not be able to get the commuter benefits.
• Partners, independent contractors, and two-percent shareholders of S corporations are not eligible for the transportation fringe benefit.
• Spouses and dependents (kids).

Unused funds roll over at the end of each month, but you can only spend the monthly IRS contribution limit. You have the ability to change future contributions to avoid excess funds.

More IRS information on 2013 fringe benefits for employers can be found here.

FSA Q&A: Are Summer Day Camps FSA Eligible?

Photo by woodleywonderworks on Flickr.

Can sending a child to camp qualify as an eligible expense for a Flexible Spending Account?

Yes, it can. Under IRS guidelines, you can send a child to a day camp as a work-related expense with a Dependent Care FSA.

To use a Dependent Care FSA for reimbursement on day camp, children have to be younger than 13 years old. They must also be claimed as dependents on the federal income tax return. You are allowed to contribute $5,000 a year to a Dependent Care FSA per household, or $2,500 for married couples who file separately. The activity the camp specializes in does not matter as far as eligibility is concerned (whether it is sports-oriented, for example).

Other eligible expenses include:

• Babysitting (work-related whether in your home or outside the home, can be done by a relative not listed as a tax dependent.)
• Before- or after-school programs
• Child care or sick-child care while you work
• Nursery school, nanny fees, or preschool.
• Expenses for a housekeeper who takes care of a child.

Non-eligible expenses:

• Overnight camps do not quality as a work-related expeses
• Daycare for a child 13 or older
• Summer School
• Kindergarten or school tuition
• Meals

Learn more about the Dependent Care FSA via the FSAstore.com Learning Center.

Sunscreen is FSA eligible + 4 Sun Safety tips!

By Mikecogh on Flickr.

It’s time to put the winter clothes away. Summer is almost here and as the weather gets nicer, our time outdoors increases. Maybe you’ve planned a beach getaway for Memorial Day weekend, or friends are having a BBQ soon, or you’re setting time aside to enjoy the outdoors.

You may not think about adequate sun protection on a daily basis, but it makes a big difference in reducing your chance of sunburn, aging, and in the worst case, skin cancer.

Did you know that…

• Skin cancer is the most prevalent of the cancers with almost 2 million people diagnosed each year.
• Melanoma cases increased from 1970 to 2009 by 800% among young women, and 400% among young men, according to the Skin Cancer Foundation. Melanoma is the fifth most diagnosed cancer among men and seventh for women.
• A single indoor tanning session could increase chances that melanoma develops by 20%.

Before you go out for a run, do errands, or make your way to work, consider these sun safety tips in honor of Skin Cancer Prevention Month.

1. Stock up on Sunscreen: It’s FSA eligible!

You can buy sunscreen with your Flexible Spending Account? In order to be reimbursed for your FSA, sunscreen must at least be SPF15 (or higher), and protect against two types of ultraviolet radiation: ultraviolet A and ultraviolet b.

Make sunscreen a must-have and check out these FSA eligible sunscreen products. Though sunscreen is considered eligible, some FSA administrators might take a more cautious approach because there has been no official IRS guidance about sunscreen, so check in with your provider.

2. Prepare for Outdoor Sports

Photo via JimBahn on Flickr.

If you’re headed to the beach or playing an outdoor sport, make sure to slather on broad spectrum sunscreen. Ideally it should be water-resistant and keep you covered even after strenuous exercise. Avoid outdoor activity between 10 am and 4 pm if possible as the sun’s rays are strongest in that time frame. If possible, create shade if you’re directly exposed to sunlight.

Be sure to reapply after swimming, and at least 30 minutes before going outside. Wear protective clothing, sunglasses and hats, especially if you know you will be outside for the majority of the day.

3. Visit a dermatologist

Dermatology is considered an FSA eligible expense. A routine body exam could give you  peace of mind and a dermatologist can also guide you towards self-exams. A self exam would involve looking for unusual growths or moles – though moles are not necessarily bad news. Find a dermatologist near you through FSAstore.com and discover the available FSA eligible services.

4. Keep kids and babies protected

Photo by the half-blood prince on Flickr.

Babies younger than 6 months old should be kept out of the sun. Their skin is too sensitive for sunscreen. However, starting with babies from 6 months to a year, sunscreen use and other protection (clothing, hats) are highly recommended. Toddlers and older kids require even more attention especially as they are playing outside (monitor their time spent outside given the 10 am-4 pm sun intensity schedule and ensure they are in the shade).

Browse FSAstore.com’s FSA eligible child sun protection:

National Women’s Health Week

Sunday was Mother’s Day – a day to celebrate mom and the kick off to National Women’s Health Week. The U.S. Department of Health and Human Services’ Office on Women’s Health is sponsoring the week (from May 12-18, 2013) to emphasize the importance of women’s health.

Throughout the week awareness is raised through events, seminars and social media outreach.

National Women’s Health Week focuses on five steps to maintaining both mental and physical health:

1. Get regular health care checkups to monitor your health

• With your Flexible Spending Account, you can access many health care providers (especially those not covered by your regular insurance policy) and their services including
• Routine physical exams and annual check-ups (for instance pap smears and mammograms) are covered by your FSA.
• FSAstore.com offers a flex spending eligible Services section to find local health care providers near by.

2. Stay or get active

• While weight-loss programs are not covered by every flexible spending account (coverage depends on the individual plan setup), exercising pays off.
• Stay on the move with FSA eligible products including athletic treatments, braces, foot care products and hot/cold packs.

3. Eat healthy

• A balanced diet will ensure you keep the pounds off, retain high energy levels, and obtain the right nutrients.
• FSA Tip: Diets are not an eligible expense for flexible spending accounts.
• Medical screenings for hearing, vision, cholesterol, blood pressure, physicals, body scans, MRIs, and diagnostic services are covered under an FSA.
  

4. Keep track of mental health

• Getting enough sleep? Adults should sleep for about 7-9 hours to be well-rested, and should keep a routine before bedtime (going to bed/waking up at specific times, avoiding late night meals).
• Feeling stressed? Take the time to properly unwind after a hectic day. Increased stress levels can negatively impact your body and mood by inducing pain, causing sleeplessness, and heightening blood pressure.
• FSA Tip: Medical expenses associated with psychiatric care are covered by a flexible spending account. Find providers near you through FSAstore.com’s Services.

5. Eliminate unhealthy habits  

• Smoking cessation programs and medications are covered by a flexible spending account.
• FSA eligible smoking-cessation products including Nicotine gum and patches are covered under an FSA with a doctor’s prescription.

FSA Q&A: Are Weight-Loss Programs FSA Eligible?

Via RambergMediaImages on Flickr.

Do weight-loss programs qualify for Flexible Spending Account Reimbursement?

A: It depends on the individual plan. Maintaining a healthy weight obviously has major benefits. Exercise is important whether you want to stay fit for yourself or for your family, simply want to lower your risk for certain diseases, or have more energy during the day.

While a health care Flexible Spending Account supports qualified health care services, weight-loss programs are not always eligible across the board. Some FSA plan administrators allow for the plans as long as they adhere to strict medical necessity guidelines, whereas others do not think the plans qualify at all.

Photo by Susan Von Struensee on Flickr.

Qualifications for Reimbursement

Under IRS guidance, weight-loss programs qualify for FSA reimbursement only if they are recommended by a physician for the treatment of specific medical conditions – diabetes, heart disease or obesity, for example. FSA administrators require a letter of medical necessity from the physician describing the need for the program and outlining treatment options.

1. If the goal of weight loss solely focuses on general health or improving your appearance, it does not qualify for FSA reimbursement.

2. Diet foods do not count towards reimbursement either as these are only a substitute for normally-qualifying nutrition.

Is Arthritis Treatment covered by an FSA?

Photo by jowiki on Flickr.

When people hear about arthritis (types of joint disorders) they often associate it with age, or think it is a singular disease. However, there are many different forms of arthritis, and arthritis does not only affect the elderly.

Osteoarthritis is a well known form of arthritis, and others include rheumatoid arthritis, psoriatic arthritis and septic arthritis. Joint pain, stiffness, loss of physical activity, and swelling are major symptoms of arthritis. Arthritis can affect knees, hands, hips, backs, feet, and elbows, but it can also target body tissues in the case of rheumatoid arthritis.

Facts from the Arthritis Foundation

The Arthritis Foundation launched a new “Faces of Arthritis” campaign to coincide with this year’s Arthritis Month to set the record straight about arthritis. The campaign disproves popular arthritis myths.

Photo by Stanford Medical History Center on Flickr.

• Prevalence: Arthritis affects millions of people. It is the leading cause of disability among Americans.
• Age: Arthritis is not defined by age. Two thirds of those who have arthritis are actually under 65 years old, almost 300,000 children suffer from it, and more serious cases occur among those in their 20s and 30s.
• Weather: barometric pressure changes can affect those with arthritis.
• “Arthritis is a more frequent cause of activity limitation than heart disease, cancer or diabetes and causes work limitations for nearly one in three people in the U.S,” according to the Arthritis Foundation.

Is treatment covered by my Flexible Spending Account?

FSAstore.com offers a range of products eligible for arthritis relief.

A Flexible Spending Account covers a visit to the rheumatologist as an FSA eligible expense. Treatment options vary depending on the type of arthritis.

• Treatment can include physical therapy, medications, and orthopedic braces.

Check out FSAstore.com’s selection of FSA eligible arthritis products. Note: Some eligible products (containing medicine) require a prescription to be reimbursed.