Flexible Spending Accounts
Learn how you can use pre-tax dollars to pay for certain types of healthcare or dependent care expenses, reducing your taxable income. Monies set aside are deducted each pay period on a pre-tax basis. Expenses may be paid with your DBI debit card or via electronic claim submission.
Use the calculators, list of eligible expenses and other planning tools at www.discoverybenefits.com to learn more about these accounts. The plan year to incur expenses is extended through September 15, 2013. Deadline to submit eligible claims for reimbursement is December 31, 2013.
Healthcare Flexible Spending Account
- May contribute $130 to $2,500 each year
- Access to the total amount you contribute on July 1
- May complete application for automatic orthodontia reimbursement
- You are not required to participate in a University medical plan to enroll.
Dependent Care Flexible Spending Account
- May contribute $130 to $5,000 each year.
- Reimbursements are only up to the amount available in your account
- May complete application for automatic reimbursement
Save Your Reciepts!
While the FSA debit card is a great way to pay for many eligible expenses, use of the debit card does not take away the IRS requireent of submitting documentation. DBI will contact you when manual claims substantiation is required. Failre to submit documentation withink the deadline will result in the cancellation of the debit card.
Health Savings Accounts
HSAs are available to Plan H members only. Employees enrolled in Medicare or listed as a dependent on another person’s tax return are not eligible for Health Savings Accounts.
HSAs resemble individual retirement accounts, except the money is earmarked for healthcare expenses. The IRS announces the maximum amounts permitted for deposit each year.
- Your deposits are tax-free and your money grows, year after year, tax-free until you use it.
- You own the account and decide how to invest and grow your money -- even when you leave or retire.
- You can withdraw funds anytime for medical expenses, including deductibles, copays and coinsurance.
- At age 65 or after, you can withdraw funds without penalty and use them for whatever you want.
- Funds withdrawn for non-medical expenses are subject to taxes and penalties.
- You receive triple tax advantages: contributions are deposited tax free, earnings accumulate tax-deferred and withdrawals for eligible expenses are not subject to federal income tax.
- Unused funds remain in the account and roll over from year to year.
- The maximum contributions for this plan year are:
- $3,050 for Single
- $6,150 for Employee plus Spouse or Child and Family.
- You may also open a Limited Flexible Healthcare Spending Account for dental and vision expenses only. This account is administered through DBI.
- Employees selecting the Health Savings Account for the first time will receive additional instructions to establish their account.
Employees who activate their health savings account within 90 days after the effective date are eligible for a University contribution of:
- $450 per year for Single subscribers
- $550 per year for Employee plus Spouse or Child subscribers
- $650 per year for Family subscribers.