Flexible Spending Accounts Gorham School Department Flexible Spending Accounts Susan introduce the presentation. How they benefit you and your family Helpful tips and a few rules Tools to help you use your accounts

Flexible Spending Accounts Covers all eligible medical, vision and dental expenses. If you are eligible for the group health plan, you may enroll! Medical FSA (Traditional) Cliff – discuss our history and product offerings. Covers care for your dependents while you and your spouse are at work. Qualifying dependents are children up through the 13th birthday or a qualifying adult (parent or spouse) who is in your care. Dependent Care FSA

Why Enroll in a Flexible Spending Account? Tax Savings! Step 1. You decide how much money to set aside in your FSA for Medical, Vision, Dental or Dependent Care Expenses. (Federal limits apply to each type of account.) Step 2. The money is contributed to your account(s) through PRE-TAX PAYROLL DEDUCTIONS each pay-period. Pre-tax means no Federal, State or FICA payroll taxes apply to the dollars you set aside. Step 3. Access the money in your account by using your debit card or by filing claims through the GDI website, fax, email or mail. You are spending money that you would have spent anyway, except you would have paid taxes on the money without the account! Step 4. Special rules and benefits apply in each type of account. Let’s take a look. Cliff discuss our broad industry experience.

Medical FSA Medical FSAs allow you to pay for out of pocket medical, vision or dental expenses (IRS Code Section 213(d)) You have to be eligible for the group health plan (you don’t have to be enrolled) You may set aside up to $2,600 each plan year You may carryover up to $500 in unused funds from year-to-year, otherwise unused funds are forfeited You have access to your whole election at anytime during the year 16.92% Healthcare & Social Services Susan zoom into the healthcare and social services experience.

More about Medical FSAs You may cover your family’s expenses with your FSA dollars. Qualified dependents are a legally married spouse and children up through their 26th birthday, even if they are not claimed on your tax return. Note that a domestic partner must be claimed as a tax dependent to be eligible. Once you make an election, it can only be changed once per year (during open enrollment) or when you experience qualified change in status events. Specific rules about participating in the plan are included in your enrollment materials and in your plan’s Summary Plan Description. 16.92% Healthcare & Social Services Susan zoom into the healthcare and social services experience.

 Debit Card Substantiation (IRS Revenue Ruling 2003-43) Type of Charge On Debit Card Substantiation Required No Follow-Up Required Matched Co-pays None  Transactions at pharmacies and grocers that can electronically validate the expenses at the point of sale. Recurring Expenses 1 time only No further substantiation required if subsequent transactions are at the same merchant for the same dollar amount Dental Care Vision Care Medical Care Type of Charge on Debit Card

Dependent Care FSA Annual Federal Maximum Contributions: Susan discuss. Annual Federal Maximum Contributions: - Single Parent or Married, filing jointly = $5,000 - Married parents who file separately = $2,500 each Compare the tax savings on the account to the Federal Child Care Tax Credit. For many employees, the DC FSA provides greater tax savings. GDI’s Automated Dependent Care Reimbursement program saves you from the hassle of filing claims throughout the plan year.

More about Dependent Care FSA Some of the Dependent Care Account rules: Carryover is not available with the Dependent Care FSA – “use it or lose it” You may only be reimbursed up to the balance in your account Qualifying recipients of care include children up to the 13th birthday; an adult (parent, spouse or older child) who is your dependent and requires care so that you can work. Qualifying providers can be individuals or a childcare center and they need to be willing to provide you with their tax ID # or SSN) and cannot be a member of your immediate family. You may change your DC FSA contributions when you have cost changes, location changes, provider changes or when you no longer need the care You will need to complete IRS Form 2441 when you file your annual federal tax return Susan discuss.

Tools to Enhance your FSA Experience Susan & Cliff Debit Card Mobile App Participant Website Personal Service

The Employee Experience The GDI Card Access your annual Medical FSA dollars at the point of sale. No more paper claims. Save all receipts!! Sometimes you have to submit substantiation in order to show that a charge is eligible – please review the card substantiation materials! The GDI App Lynne GDI Easy access to account information using smart phones and tablets Submit claims, photograph and upload receipts and check account balances Set text alerts for account updates

The Employee Experience The GDI Participant Portal Go to: www.gdynamic.com; click on Participant Portal to get started Account balance information File claims See debit card transactions View claim history Download forms Order additional debit cards Lynne

Call the GDI Reimbursement Team Cliff discuss. Phone Service from 8 AM to 5 PM EST Send an email and it’s answered the same day or the next morning if you sent your message in the evening Genuinely nice people who know how to help you!

Convenient Claim Options Options for claim reimbursement: Claims are processed weekly! Use your GDI debit card File via the participant portal at www.gdynamic.com Email a claim to GDI Fax a claim to GDI In by noon on Tuesday, check or direct deposit occurs on Thursday.

Thank you for your time!