Hudson City School District Flexible Spending Account Plan

Flexible Spending Account Plans (FSA) 2008 Health Care Reimbursement Account Dependent Care Reimbursement Account

Reimbursement Accounts No Federal, State or FICA Tax Results in 25 to 30% savings on Expenses Funded Through Payroll Deduction Hudson City School District pays for the administration costs

Pre-Tax vs. After-Tax $25,142Spendable Income$25, ___After-Tax Election___0_____ 500Medicare 499 8,750Income Tax 8,600 $35,000Taxable Income 34,400 0Pre-Tax 600 $35,000Salary$35,000 After-TaxPre-Tax (use of Flex Plan)

New and Improved Card Parameters

Flexible Spending Plan Improved Claim Filing Procedures Expanded receipt request periods Direct Deposit Option on Dep. Care Claims Grace Period for Claim Filings until March 15th On line claim access

Hudson City School District Health Insurance Plans New Plan Design Options & Varying Deductibles and Co-Pays Increase in the cost share amount for Prescriptions Flex Plan Helps Immediately!

Health Care Reimbursement Account Deductibles 20% or 30% Co-Insurance after Deductible Prescription co-pays Vision Exams, Glasses and Contacts Dental Deductibles and Orthodontics Up to $3, 500 per year in out-of- pocket costs !!!

Health Care Reimbursement Account You tell us what you need at the beginning of each year Entire balance is available at the beginning of the plan year Debit card & Claim Kits are issued. You pay Hudson City School District back through payroll deductions – Tax Free and Interest Free!

Examples of Eligible Health Care Expenses: Deductibles Co-Pays Rx Costs Orthodontia Contacts or glasses Contact lens solutions Birth Control Air conditioner for allergy relief School Physicals RK eye surgery Acupuncture Psychiatric Therapy Reimbursement for

Over-the-counter expense items such as: Tylenol Excedrin Robitussin Vicks Vapo Rub Pepcid AC Claritin Neosporin Ointment Band Aids

How can a health care reimbursement account help you? Vision Example You know that you will have $ in out of pocket costs for lenses, frames, office visit and contacts this year and do not have a Vision Plan. You can elect $ in your flex account and use this election for vision care.

How does the health care reimbursement account work? Budget for known expenses only! You must have a receipt to claim reimbursement. Reimbursement checks are issued twice monthly. You have until March 31, 2009 to claim expenses incurred from Jan – Dec 2008.

How does the health care reimbursement account work? Are you ever able to change your annual election once it has been made? Qualifying Event

The New Grace Period If you have an account balance remaining in 2007 New IRS law allows an additional 2 ½ months to incur claims in 2008 Automatically pays your 2007 balance first. Balance paid from 2008 election

Dependent Care Expenses Day Care Expenses Baby-Sitting Adult Day Care for Spouses and Parents

Day Care Example Currently paying $60 weekly in day care 4 weeks in each month Savings are roughly 25% on taxes Savings= 1 week monthly for free Increase take home pay by $60 mo.

Dependent Care Children under age 13 unless disabled Caregiver cannot be family member Need Tax ID number of care giver Cannot deduct on taxes at year end Up to $5,000 pre-tax per year ($2,500 if married/filing singly )

Child Care Enrollment Your account may be used for all eligible dependents – whether or not they are enrolled in other insurance plans, so plan carefully We record your election and issue a card and claim payment kit to your home.

Child Care Enrollment If you elect to participate in this benefit, it will become effective January (expenses would have to be incurred between Jan – Dec of 2008) Your benefits will continue throughout the plan year unless you have a qualifying event or change in status

Where to get help? Enrollment Materials North Coast Administrators or Human Resources