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Financial Advisers

 

Flexible Spending Accounts

What is a Flexible Spending Account (FSA)?

  • An employer sponsored benefit program which allows employees to pay for certain qualified health and dependent care expenses tax free
  • Employees designate an annual election which may not be changed without a qualifying status change or life event.
  • Plans within the FSA may include group health premiums, individual health premiums, medical reimbursements, and dependent care reimburesements.
  • "Use it or lose it" with an optional 2 1/2 month grace period allowing employees to incur expenses during the plan year


What types of healthcare expenses may be put in a FSA?

  • Deductibles and co-pays for doctor of hospital visits
  • Presciptions
  • Vision and dental
  • Over the counter drugs
  • Mileage for healthcare
  • Mental health


What types of dependent care expenses may be put in an FSA plan?

  • Care for you child with these stipulations: dependent under age 13, in or outside you home, and not by another dependent under age 19
  • Care of physically or mentally disabled spouse or dependent that spends at least eight hours per day in your home
  • Licensed day care center
  • Nursery school (not kindergarten or highter)
  • Day camp (not overnight camp)


What services does Kolb+Co offer for an FSA Plan?

  • Written Plan Documents
  • Summary Plan Descriptions
  • Implementation and educational material
  • Employee/employer reporting and forms
  • Claims adjudications and reimbursemetn
  • HIPAA compliance
  • Plan Ammendments
  • Annual Discrimination Testing
  • Website access
  • Annual 5500 (when applicable)


Who may not participate in the pre-tax benefits of the FSA Plan?

  • Self-employed including sole proprietors, partners in partnerships and directors of corporations (Spouses of the sole proprietors and partners may participate in teh program as long as they are an employee of the company.)
  • More than two percent shareholders in a sub chapter S corporation ( Grandparents, parents, spouses, children and grandchildren of the shareholders are deemed to own what the shareholder owns and may not participate in the plan.)
  • Officers or partners in LLCs & LLPs treated as partnerships