You can set aside before-tax money throughout the year in a flexible spending account (FSA) to pay for anticipated health care and/or dependent care expenses. You’ll not only build a balance of funds to pay expected medical, dental, vision and dependent care bills incurred during that calendar year, but you’ll also lower your taxes.
There are two types of flexible spending accounts associated with health care expenses—a regular Health Care Spending Account and a Limited Use Flexible Spending Account. If you select the BCBSTX PPO, the Kaiser HMO or opt out of BMC medical coverage, you are eligible to contribute to the Health Care Flexible Spending Account. If you select the BCBSTX HSA Plan, you are eligible for the Limited Use FSA. The Limited FSA can be used to pay eligible dental, vision and other non-medical expenses.
Using Your Flexible Spending Account
Details on how to use each individual FSA can be found in the plan details below. You can also go to the MyBMC Rewards website (select the Your Spending Account tile) to:
- Estimate how much to contribute to the Flexible Spending Account(s).
- Check your FSA or HSA balances.
When you file a claim, you can choose to have your reimbursement sent to you in a check or directly deposited into your checking or savings account. Complete the online direct deposit authorization form, available on the MyBMC Rewards website (select the Your Spending Account tile).
Things To Know About Flexible Spending Accounts
When making your contribution decision, take the time to carefully evaluate your personal situation, consult with your tax advisor and consider the following facts:
- Your Health Care FSA and your Dependent Care FSA must be maintained separately; you cannot transfer money between the two accounts.
- You cannot claim a tax credit or deduction for any expenses reimbursed from your accounts. However, you can claim a tax credit or deduction for any unreimbursed expenses, subject to IRS regulations. Consult with your tax advisor to determine which option is more beneficial to you.
- The list of services eligible for reimbursement can change from time to time. For complete details, see IRS Publication 502 (health care) or 503 (dependent care). See more information and a complete list of qualified health care expenses on the MyBMC Rewards website (select the Your Spending Account tile).
- Once you enroll in the Health Care FSA or Dependent Care FSA, you cannot change your contribution level until the next annual enrollment period, unless you have a qualifying change in family status (life event) that complies with IRS requirements.
- If you leave the company, you can continue to file claims against your Health Care FSA balance for expenses incurred before your employment with the company ended. If you make after-tax contributions, you also may be eligible to continue your participation in the Health Care FSA under COBRA and incur reimbursable expenses until the end of the calendar year in which your employment with BMC terminated.
- If you terminate your employment with the company and do not elect to continue contributions to your Health Care FSA under COBRA or you are not eligible to do so under COBRA, you must submit any outstanding claims within 90 days of the end of the plan year in which your employment ends.
- If you terminate your contributions to the Health Care FSA because of a qualified family status change (life event), you will be reimbursed only for claims incurred prior to the date you stopped contributions, and for any claims to be eligible for reimbursement, they must be submitted within 90 days of the status change.
- If you enroll in one or both accounts because of a qualified family status change, only expenses incurred after the enrollment date are acceptable.
If you have any questions about your participation in a flexible spending account, call Your Spending Account at 1-877-BMC-4849.