1. Section 125 Flexible Spending Accounts with the Verity National Star Card

2. Two Types of Flexible Spending Accounts
Health Care FSA
Dependent Care FSA

3. What is a Health Care FSA?
A “Health Care FSA” is a program employees can use to pay for
medical expenses that are not reimbursed through insurance
or any other arrangement.

4. Health Care FSA Eligible Expenses (If not covered by your primary medical insurance)
Deductibles and Co-pays
Contact Lenses
Special Tests
Laboratory Fees
Prescription Drugs
Coinsurance
Psychotherapy
Fertility Treatments
Crutches
Eyeglasses
Vision Care
Hearing Aid Devices
Dental Expenses
Optometrist Services
Physical Exams
Acupuncture
Orthodontia
X-Rays

5. How do I Estimate FSA Contributions in Advance?
Review similar expenses over the last couple of years.
Consider changes to family health care needs that may occur during the year.
Use the worksheet at to balance risk of forfeiture versus tax saving opportunities.
For the 2010 Plan year, the FSA plan has a minimum annual election amount of $ and a maximum annual election amount of $ , and if you elect less than $500 in the FSA plan there is a one time charge of $12 deducted from payroll.

6. What is a Dependent Care FSA?
Dependent Care Accounts (DCAs) reimburse elder or child care expenses that allow the employee and his or her spouse to be “gainfully employed.”
PLEASE NOTE: IRS mandates that the maximum election per household is $ per calendar year.

7. Dependent Care Eligible Expenses (For Eligible Tax Dependents)
After-school care or extended day care programs
Au pair
Babysitter
Before-school care
Day Camp
Elder Care
Nanny
Preschool /
Nursery school

8. Do I Need to Enroll to Participate in an FSA?
If you are currently enrolled and want to keep your FSA election the same you will not need to reenroll. If you are not currently enrolled or would like to make changes to your FSA election you will need to complete the online enrollment.
**NOTE: If you elected less than
the $300 you will need to reenroll.

9. Can I Participate in both Health and Dependent Care FSAs?
Yes!
However, IRS regulations require the accounts to operate separately You cannot use funds from one to pay for expenses from the other.

10. Verity National Star Card
Instant access to your account funds
Automatically issued when you enroll
Rarely required to pay out-of-pocket
Virtually eliminates claim forms and receipts
No more waiting for reimbursement checks
Instant online access to your account balance

11. How do I Use the Card?
Star Card is restricted to use for FSA-eligible services and purchases, per the IRS
Smart technology allows only the appropriate account to be debited
Not eligible for use at ATMs or other unqualified merchant locations

12. Provider doesn’t Accept Credit Cards?
Pay for eligible expense(s) out-of-pocket and then...
Mail, fax, or claim form and receipt to: 
Verity National Group, Inc.
P.O. Box
San Antonio, TX
Fax: (210)

13. Thank You… The Verity National Star Card Team
Section Flexible Spending Accounts
Please consider taking advantage of this convenient, cost-saving benefit…
Sign Up Today!
Thank You… The Verity National Star Card Team