Flexible Spending Accounts
Changes for 2014
In 2014 you will have a new and convenient way to use your Flexible Spending Accounts. We are pleased to announce that Boston University has selected P & A Group to administer the Flexible Spending Accounts starting in 2014.
- Conveniences of the latest technology options such as debit cards
- A full-service website that allows participants to see balances, review claims, and upload claims using a secure online system
- Use your smartphone to submit claims
- Extended customer service hours
How the Flexible Spending Accounts Work
Flexible Spending Accounts, or FSA’s, are designed to cut inevitable costs while increasing your take-home pay. Maximize every dollar by taking advantage of this benefit choice, and save on qualified out-of-pocket expenses by enrolling in a plan that is right for you.
The “Use It Or Lose It” Rule
Under IRS guidelines, if you contribute dollars to a Flexible Spending Account and do not use all of the monies you deposit, you will lose any remaining balance in the account at the end of the plan year. Only contribute money you are confident you will use during the plan year to pay for qualified expenses.
Flexible Spending Account – Health Care
Under the Health Care FSA plan you can use pre-tax money to pay for different kinds of expenses, including: your medical, dental, and vision care expenses that are not covered by your insurance. In 2014, you can contribute up to $2,500 to your Health Care FSA, which means you can reduce your taxable income up to $2,500 to help pay for your out-of-pocket health care expenses.
Eligible services for the 2014 plan year must be incurred between January 1, 2014 and March 15, 2015. You must submit claims incurred during the plan year by March 31, 2015, or you will forfeit any remaining balance.
Flexible Spending Account –Dependent Care
Under the Dependent Care FSA you can use pre-tax money to pay for the cost of caring for a dependent while you work. If you are single, or married filing jointly, you can defer up to $5,000 of your annual salary to pay for qualifying dependent cay care expenses that enable you, or you and your spouse, if you are married, to work or attend school on a full-time basis. (You can defer up to $2,500 if you are married and filing separately
Eligible services for the 2014 plan year must be incurred between January 1, 2014 and December 31, 2014. You must submit claims incurred during the plan year by March 31, 2015, or you will forfeit any remaining balance.
When You Enroll
When you enroll, you determine the options you desire, along with the amount of expenses you anticipate for the upcoming year. The benefits you elect are paid for with pre-tax dollars deducted from your paycheck each payroll period. These dollars are subtracted from your gross earnings before taxes are taken out.
Your Spendable Income Increases
When you elect pre-tax benefits under a flexible benefits plan, you lower your taxable income on your W-2; therefore, you pay less in taxes and increase your spendable income. The amount of savings you will realize from this plan is dependent on your tax bracket. To estimate your out-of-pocket health and dependent care expenses for the coming year – and how much you can save in taxes – visit our Flexible Spending Account Calculators.
Taking advantage of flexible spending accounts can reduce your out-of-pocket health care (and dependent care) costs.