Things to Consider For help making your election, consider the following questions. • How much have I spent for myself and my dependents on out-of- pocket medically related expenses in the past 12 months? • How much will I spend for ongoing medical expenses next year? • Am I better off having dependent care expenses paid through the Dependent Care Spending Account or taking the child care tax credit? • Does my spouse also contribute to a Dependent Care Spending Account? The maximum amount any one family can contribute during a calendar year is $7,500. • Do I understand that I cannot take a federal income tax deduction for expenses I am reimbursed for from my Dependent Care Spending Account? • If you or any member of your family is enrolled in a high deductible health plan with an HSA, you may be limited in your participation of the medical FSA plan. Be conservative in estimating your plan year contribution. You may not claim any other tax deduction under this Plan, although the balance of your eligible dependent care expenses may be eligible for the dependent care tax credit. The Dependent Care Spending Account is generally more advantageous than taking a federal tax deduction if you fall into general annual salary categories based on how you file your federal income tax and your adjusted gross income. See the dependent care worksheet that compares the tax credit to the Dependent Care Spending Account plan. Legal Requirements of the Plan 1 Binding Contribution: When a participant signs up to make a contribution, the amount decided upon is “locked in” unless they incur a “change in status” (explained below). 2 Use-it or Lose-it Rule: Please refer to your plan specifics sheet to determine if this may or may not impact you. 3 “Advance Reimbursement” applies only to the Health Care Spending Account and allows a participant to be reimbursed up to the maxi- mum of their plan year election prior to their full year contribution. Ways to Manage Your Account “Flex Administrators Mobile” is Available on the App Store & Google Play The app lets you view balances, claims and card
How Much Do I Really Save in Taxes Using This Account?
Without Flex
With Flex
AnnualSalary.. . . . . . . . . . . . . . . . . . . $40,000 Health Care or Dependent Care SpendingAccount.. . . . . . . . . . . . . . . . . . -0- Taxable Salary (W-2 Income) . . . . . . . . 40,000 Federal Tax (15%). . . . . . . . . . . . . . . . . . 6,000 State Tax* (4%). . . . . . . . . . . . . . . . . . . . 1,600 Social Security Tax (7.65%). . . . . . . . . . . 3,060 TotalTaxes.......................10,660 After-Tax Out-of-Pocket Medical Expenses. . . . . . . . . . . . . . . . 2,500 Annual Take-Home Pay . . . . . . . . . . . . $26,840 Annual Tax Savings with Flex Plan . . . . . . . . . Spending Account Deduction
$40,000
-2,500
37,500 5,625 1,500 2,869 9,994
-0-
$27,506
$666
Your Tax Savings
* Taxes may vary by state. ** R eimbursement is through W-2, not reimbursed as an expense through third party administrator.
Can I Change My “Plan Year” Election? Generally, no. You may not change your contribution during the plan year, unless you have an IRS “change in status,” and the change in your contribution is “due to and on account of” the change in status. The IRS defines a change in status as: 1 Change in employee’s legal marital status – including marriage, divorce, death of spouse, legal separation, and annulment. 2 Change in number of dependents – including birth, adoption, placement for adoption, and death. 3 Change in employment status – Any of the following events that change the employment status of the employee, the employee’s spouse, or the employee’s dependent qualify: a termination or com- mencement of employment; a strike or lockout; a commencement of or return from an unpaid leave of absence; and a change in work site. 4 Dependent satisfies (or ceases to satisfy) dependent eligibility requirements – an event that causes the dependent to satisfy or cease to satisfy the requirements for coverage due to attainment of age, gain or loss of student status, marriage, or any similar circumstances. 5 Residence change – a change in the place of residence of an employee, spouse, or dependent (if the residence change affects the employee’s eligibility for coverage). You can also change your contribution to the dependent care account during the plan year in the following situations: • When the dependent ceases to qualify as a dependent (for example, the child reaches age 13); • When the employee switches to a new dependent care provider; and, • When the cost of the dependent care expense increases or decreases. However, a mid-year election change due to cost is not allowed where the dependent care provider is a relative of the employee. If a change in status occurs, you must inform your employer of your new election within 30 days of the occurrence. Have Questions? Email us: Service@Flexadministrators.com
transactions as well as submit a claim! No more faxing receipts! You can file a claim directly from your mobile device with a photo of the receipt. You can check account balances 24/7 securely since no information is stored on the mobile device. Online Claim Filing You have the option to enter your claim on our website and then upload your receipts without having to mail
or fax anything to our office! Simply log in to your account and choose REIMBURSE MYSELF. From there the website will walk you through entering your claims information and then uploading your receipts. Check Balances, Reimbursement Status, and get Answers to Your Questions at www.flexadministrators.com Check your balances, see your last reimbursement and get answers to your questions by logging into your account at www.flexadmin- istrators.com.
Flex Administrators 3980 Chicago Drive, Suite 230
Grandville, MI 49418 PHONE: 616.456.7908 Outside of 616 area code: 800.968.3539 www.flexadministrators.com
FSA Brochure 2026
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