August can be a busy month for many families getting back into their regular Back-to-School routine. But just as school supplies, new clothes, and sporting equipment are important to start off the new school year, so is planning ahead to use end-of-year Flexible Spending Account (FSA) funds. Use up the pre-tax benefit dollars by spending them on common health care expenses that come up in the fall. The FSA can provide a source of financial relief for the must-have items every family needs to stay healthy during the Back-to-School season.
Fall is one of the best times to get yearly checkups done and paid for by using FSA dollars. Check out a few below:
- Yearly & Sports Physicals – make it a habit to keep up these standard checkups for all family members. Keeping all members of the family healthy is important. For kids heading back to school or getting ready to play sports, these annual exams are necessary to assess their health and physical well-being, while building up their medical history and gathering the paperwork needed to ensure that they are up-to-date on state-required vaccines.
- Dental Exams & Orthodontia – taking good care of oral health is important, but can be expensive. Use FSA dollars to help alleviate the burden of paying for dental exams, braces, bridges, and other forms of orthodontia for growing kids.
- Eye Exams & Corrective Eyewear – another great checkup for all family members are eye exams. Having a hard time seeing can hinder a child’s learning or a parent’s work performance. Along with the eye exam, corrective eyewear, such as glasses or contact lenses, supplies and solutions, are available to purchase with FSA dollars.
Needing some last minute eligible expenses to purchase with FSA dollars? A few are listed below.
- Band-Aids – cover up all types of cuts and scrapes with FSA-eligible bandages (non-medicated).
- Allergy Relief – going Back-to-School may mean back to pesky allergy season. Grab relief in the form of tablets to sprays and throat lozenges. (Must be doctor prescribed).
- Wax for Braces – braces can be extremely uncomfortable, but buying wax for braces can help stop irritation.
- Thermometers – sick days are bound to happen, but stay on top of all family health issues this fall and winter with a preferred device.
- Acne Relief – acne is a major issue in the teen years. With a prescription, teenagers can fight those embarrassing, pesky breakouts.
- Copays – every time an appointment is made, whether it’s a physical, dental exam, or for an illness, use FSA funds to pay the copay.
Curious about what other items could be considered eligible expenses? Check out IRS Publication 502. For more information on the 125 Cafeteria Plan Flexible Spending Account, call BASE® at 1-888-386-9680.
The 4th of July celebration may be over, but employers and employees across the country are enjoying their FREEDOM with the BASE® 125 Cafeteria Plan has to offer. Employers can choose which pre-tax benefit options to provide and the employees can customize to what works for them. Each plan helps to expand the business’ benefits package and both the employer and employees find more ways to maximize their savings and tax benefits. When employees elect pre-tax contributions, it also helps to reduce the employer’s share of FICA/FUTA taxes; employees will see an increase in take-home pay.
A Flexible Spending Account (FSA) is a plan established by the employer that allows employees to set aside money, on a pre-tax basis, to pay for qualifying out-of-pocket medical expenses. FSA elections can only happen once a year unless a qualifying event takes place; such as marriage, divorce, or the birth of a child. The maximum contribution limit on this benefit is $2,700.
This plan gives the employee the FREEDOM all year to pay for qualifying expenses such as:
- Flu shots
- Hearing aids & batteries
- Lasik
- Orthodontia
- Physical therapy
- Rx prescriptions
- Vaccinations
- X-rays
- And MUCH MORE
A Dependent Care Assistance Program (DCAP) is a plan established by the employer that allows employees to set aside money, on a pre-tax basis, to pay for qualifying dependent care expenses. No matter the type of care, this plan provides some additional financial assistance to help take care of the family. The maximum contribution limit on this benefit is $5,000.
This plan gives the employee the FREEDOM all year to pay for daycare, before/after school programs, and elder care for the following types of individuals:
- Children under 13 claimed on participant’s tax return as a dependent
- A spouse who is incapable of self-care
- A dependent, over 13, sibling, or in-law, incapable of self-care that lives with the participant and is claimed on the tax return
- Care for a disabled spouse or dependent outside of home, but lives with participant at least 8 hours a day
A Limited Purpose Flexible Spending Account (Limited Purpose FSA) is a plan established by the employer that allows employees to set aside money, on a pre-tax basis, to pay for qualifying dental and vision care expenses. This type of plan is available to those enrolled in a High Deductible Health Plan (HDHP) and a Health Savings Account (HSA). When enrolled in a Limited Purpose FSA, employees are open to utilizing HSA funds for savings and investment opportunities.
This plan gives the employee the FREEDOM all year to pay for qualified out-of-pocket dental or vision care expenses. Such as:
- Dental – cleanings, fillings, crowns, or braces
- Vision – contact lenses, eyeglasses, eye exams, and vision correction procedures
A Premium Only Plan (POP) is an optional solution for employers who want to provide employees with an affordable way to pay for their group health plans. This plan allows for employees to pay for a variety of employer-sponsored benefits, such as supplemental insurance premiums on a pre-tax basis. Any size of employer can take advantage of a POP. It is a simple IRS-approved change in an employer’s payroll process that deducts the employee portion of employer-sponsored benefit premiums pre-tax.
Let FREEDOM ring…the FREEDOM to pay for eligible expenses all year with the BASE® 125 Cafeteria Plans. Provide the FREEDOM to pay for eligible out-of-pocket medical, daycare, and insurance premiums with pre-tax dollars while saving valuable tax dollars each year! For more information on the BASE® 125 Cafeteria Plans, call 888-386-9680.
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