Frequently Asked Questions

• How long does it take to be reimbursed?

  Your tax-free reimbursement checks are mailed daily for reimbursement claims received, unless otherwise indicated.

• What happens to the money not used during the plan year?

  You are given thirty (30) days from the end of the plan year (may vary) to request money from the accounts on a pre-tax basis for expenses incurred within the plan year.  After allotted time any unclaimed funds left in the Flexible Compensation Program are returned to your employer.

• Does this pay interest on the money put in the Flexible Compensation Program?

  No, your reimbursement trust account is not meant to be a savings account.

• Can't you receive a deduction on your 1040 tax form for medical expenses?

  Yes, but the deduction is limited to expenses which exceed 7½% of your gross income.  For example, if you make $15,000 per year, you would need at least $1125 of medical expenses before you could take a deduction on your income taxes.  When you put money in the Flexible Compensation Plan you receive an immediate Federal, State, and Social Security tax deduction.  There are no additional tax forms you have to file at the end of the year because of your participation in this benefit.

• If you allocate money for any medical expense can you spend it on another?

  Yes, money you place in the medical expense Flexible Spending Account (FSA) can be spent on any Federally- allowed expenses, and they can be spent for the benefit of you or any of your dependents.  You may not however, spend medical expense FSA funds on Child Care FSA expenses and vice versa.

• How much will this effect your Social Security Benefit?

  Each person's Social Security benefit is different depending on your salary, age, etc.  One of the benefits of the Flexible Compensation Plan is that it allows you to take some of the money you were paying to the Government and now invest it in your own savings program if you wish.

• Can you change your Flexible Compensation Program pre-tax salary contributions?

  Yes, the Internal Revenue Service allows you to change your contributions each year.  Additionally, you can change your contributions if you have a change in your family status (eg., marriage, divorce, birth, death, or change in your job status).

• Do you have to submit receipts before collecting reimbursement from this program?

  Yes, we require that you enclose a copy of medical expense bills, or receipts when you request reimbursement money from your medical expense FSA.  The medical expense bill or receipt must show the name of the provider, cost of the expense, and the date incurred.  We provide you with claim forms for you to use.

• Can't you receive a tax credit on your 1040 tax from for child care expenses?

  Yes, however the Flexible Compensation Program gives you a tax deduction on not only your Federal income taxes, but also your State Income Taxes and Social Security Taxes.  Generally, families save more taxes with the Flexible Compensation Program than they would with the 1040 tax credit.

• Do you pay taxes at the end of the year on salary contributions to this plan?

  No, you pay no taxes on contributions to this benefit.  The money is tax free as long as you spend it on qualified medical or child care expenses.  The money will not be taxed on your paycheck.  The money will not be taxed when you use it and the money will not be taxed when you file your 1040 tax form at the end of the year.