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2018 FSAs Help You Save on Everyday Expenses

A Flexible Spending Account (FSA) allows you to set money aside on a tax-free basis to pay for eligible health care and/or dependent day care expenses. So, you reduce your taxes and increase your take-home pay!

How It Works

The amount you choose to set aside is taken out of your paycheck before taxes are withheld from your income. You do not pay federal income or Social Security taxes on the money you contribute to your FSA. On average, an FSA could save you between 23% and 30% in taxes on the money you contribute, depending on your annual income and tax bracket.

FSAs are subject to the “use it or lose it” rule. Each year, you must use your entire FSA balance by the end of the grace period (March 15 of the following year). You forfeit any FSA balance you don’t use by the end of the grace period.

Two FSA Options

You can have one or both* of these accounts:

  • Healthcare FSA—reimburses eligible expenses, including prescription drugs and other medical, dental and vision expenses.
  • Day Care FSA—reimburses eligible child care (under age 13) or adult day care expenses while you and your spouse work or while your spouse goes to school full-time.

* If you are enrolling in Option A, you can have a Day Care FSA, but not a Healthcare FSA.

Smart Tools for Easier Access!

The PayFlex® website (www.payflex.com) provides real-time access to your FSA balances, claims processed and transaction information.

Make it mobile! Download a mobile app by logging in to the apps store on your smartphone or BlackBerry and look for the free “PayFlex Mobile” app.

Take paperless to the next level by taking a picture of your receipt with your camera and uploading it to the PayFlex site.

Two Ways to File Claims

Go Online for Faster Reimbursement

The PayFlex online claims system is the right choice for these claims:

  • Dependent care expenses you are submitting to your Day Care FSA
  • Health care expenses if you are not enrolled in a Dominion Energy medical, dental or vision plan
  • Health care expenses that are not covered by a Dominion Energy plan (such as contact lens solution)

For even easier claims filing with your Healthcare FSA, you can sign up for auto claim filing.

A Paper Form Works Too!

  • Download a claim form.
  • Healthcare FSA Claims: Complete and return the form along with your receipts. In most cases, the Explanation of Benefits (EOB) you received from your medical, dental or vision care insurance company will have the information needed to process your claim. If an EOB is not available, include this information with your claim:
    • Provider of the service
    • Date and cost of the service
    • Type of service or medical supply
  • Day Care FSA Claims: You’ll need to provide the name, address and tax identification number of the dependent caregiver, the name of the dependent who received care, and the dates that care was provided.
  • Mail or fax the form and the EOBs and receipts to the address or fax number on the claim form.

Reimbursement Choices

You may choose to have your FSA reimbursements in either of these ways:

  • Sent to you in a check.
  • Directly deposited into your checking or savings account. Enroll online or use the FSA Direct Deposit Authorization Form to sign up for direct deposit. Completed forms should be sent directly to PayFlex.
    • You may also enroll online at www.payflex.com.
    • The direct deposit option carries over automatically from year to year.

The Fine Print

  • Save copies of receipts that you submit for FSA reimbursement. PayFlex (the FSA administrator) requires receipts for reimbursement.
  • Be sure about your annual contribution amount. You cannot change your FSA contribution amount during the year, unless you experience a qualifying life event that permits the change.
  • FSAs are not interchangeable. Contributions and expenses cannot be transferred between your Healthcare FSA and your Day Care FSA, and vice versa.
  • Estimate carefully. Your FSA balance is only available to reimburse eligible expenses you incur between January 1 of one year and March 15 of the following year (in other words, a 14½-month period). Any money left in your FSAs after the claim filing deadline—April 30—will be forfeited based on IRS regulations. Make sure to use all dollars you set aside for the year. Need ideas for spending all your FSA money before the deadline?

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