1. Flexible Spending Accounts 2014 Save Taxes and Manage Health Care Costs Presented by Sam Ramirez

2. Who, What, When, Where, Why & How? Q: What are flexible spending accounts? Q: What are flexible spending accounts? A: Accounts where you can set aside pre-tax dollars to pay for medical or dependent care expenses A: Accounts where you can set aside pre-tax dollars to pay for medical or dependent care expenses Q: Why should you want to learn more? Q: Why should you want to learn more? A: To save tax dollars, smooth out costs A: To save tax dollars, smooth out costs Q: Who administers the benefit for B-W? Q: Who administers the benefit for B-W? A: Finance, Human Resources and Payroll A: Finance, Human Resources and Payroll

3. Who, What, When, Where, Why & How? Q: Who is eligible to participate? Q: Who is eligible to participate? A: B-W Employees, even if they do not have our health care plan, special rules apply for Dependent Care Account A: B-W Employees, even if they do not have our health care plan, special rules apply for Dependent Care Account Q: What accounts are available? Q: What accounts are available? A: Medical Care and Dependent Care Reimbursement Accounts A: Medical Care and Dependent Care Reimbursement Accounts Q: How much can I set aside in each account? Q: How much can I set aside in each account? A: Up to $2500 in medical and $5000 in dependent care account A: Up to $2500 in medical and $5000 in dependent care account

4. Who, What, When, Where, Why & How? Q: How do I determine how much to set aside? A: Review past expenses and be a little conservative Q: Can I change the amount I set aside? A: Generally not unless it is a qualifying event. Q: What are some eligible expenses? A: Co-pays, co-insurance, deductibles, items that are not covered by plan (glasses, braces, etc.) Q: What are some ineligible expenses? A: Vitamins, face-lifts, OTC drugs etc.

5. Q: When do I have access to the money? Q: When do I have access to the money? A: Immediately, for medical care, after it has been deducted from your pay for dependent care A: Immediately, for medical care, after it has been deducted from your pay for dependent care Q: When must expenses be incurred? Q: When must expenses be incurred? A: January 1, 2014 through December 31, 2014 A: January 1, 2014 through December 31, 2014 Q: How does expense reimbursement work? Q: How does expense reimbursement work? A: Submit claim form to Finance A: Submit claim form to Finance

6. What is the Reimbursement Process? First, enroll First, enroll Incur eligible expense – get receipt Incur eligible expense – get receipt You can request reimbursement for medical anytime after it’s been deducted for dependent care You can request reimbursement for medical anytime after it’s been deducted for dependent care As you incur eligible expenses and you pay for a service – submit claim form and receipt As you incur eligible expenses and you pay for a service – submit claim form and receipt Within a few days you will receive your check Within a few days you will receive your check

7. Who, What, When, Where, Why & How? Q: What happens if I have money left over? Q: What happens if I have money left over? A: NEW - Beginning in 2014 for year 2015, up to $500 in unused funds from medical account can be carried over. A: NEW - Beginning in 2014 for year 2015, up to $500 in unused funds from medical account can be carried over. Q: How does it actually save me money? Q: How does it actually save me money? A: Reduces gross taxable income A: Reduces gross taxable income Q: Who do I submit claims to? Q: Who do I submit claims to? A: Finance – Lisa Giesen A: Finance – Lisa Giesen

8. Who, What, When, Where, Why & How? Q: Where do I get claims forms? Q: Where do I get claims forms? A: HR or on-line bw.edu/resources/hr/forms A: HR or on-line bw.edu/resources/hr/forms Q: How long does it take to get money? Q: How long does it take to get money? A: Not long – couple of days A: Not long – couple of days Q: When is the last day I can submit a claim for this year (2013)? Q: When is the last day I can submit a claim for this year (2013)? A: March 15, 2014 A: March 15, 2014

9. Who, What, When, Where, Why & How? Q: Do I need to re-enroll every year? Q: Do I need to re-enroll every year? A: Yes A: Yes Q: What if the amount I am going to set aside next year is the same, do I still have to re-enroll? Q: What if the amount I am going to set aside next year is the same, do I still have to re-enroll? A: YES! A: YES! Q: Where do I get the enrollment form? Q: Where do I get the enrollment form? A: Visit HR’s web site. A: Visit HR’s web site.

10. How Do I Complete Enrollment Form for Medical? Complete top portion Complete top portion Name, last 4 digits SSN, department Name, last 4 digits SSN, department Check New Enrollment Check New Enrollment Biweekly (24 pays) Biweekly (24 pays) First line – biweekly amount First line – biweekly amount Second line – Total for Year Second line – Total for Year Monthly (12 pays) Monthly (12 pays) First line – Monthly amount First line – Monthly amount Second line – Total for Year Second line – Total for Year

11. Dependent Care vs. Health Care Medical Reimbursement Account is for employee, spouse and dependent children health-related expenses Medical Reimbursement Account is for employee, spouse and dependent children health-related expenses Dependent Care Reimbursement Account is for spouses, parents and typically dependent children of employees – after school care – nursing home – etc. Dependent Care Reimbursement Account is for spouses, parents and typically dependent children of employees – after school care – nursing home – etc.

12. To Learn More www.bw.edu/resources/hr www.bw.edu/resources/hr www.bw.edu/resources/hr/forms www.bw.edu/resources/hr/forms www.bw.edu/resources/hr/forms