Page 15 - KIPP NYC 2022 Benfits Summary

Flex Spending Accounts
Flexible Spending Accounts (FSA)
KIPP NYC offers employees the opportunity to contribute to a flexible spending account, administered by Benefit Resource, Inc. Flexible Spending Accounts enable you to set aside money, on a pre-tax basis via payroll deduction, for many kinds of common unreimbursed healthcare and dependent care expenses. If you elect to contribute funds to an FSA, you will reduce your taxable income while paying for services you would pay for anyway. If you choose to make an election, you will receive a Beniversal debit card (this card can also be used for qualified transportation expenses if you choose to make commuter benefit elections).
Your election is binding. Once you elect to contribute funds to an FSA, you cannot change or cancel that election unless you experience a life status change or until the next open enrollment period. If you are enrolling mid-year, divide your annual election by the number of remaining pay periods.
Dependent Care FSA
A Dependent Care FSA allows you to pay for dependent care expenses for eligible dependents that live with you. Services provided must allow you (and your spouse) to go to work, seek employment or attend school full-time. Eligible dependents include children under age 13, a disabled spouse, a parent, or disabled child over the age of 13. The maximum annual contribution to the Dependent Care FSA is $5,000 ($2,500 if married and filing separately).
Examples of eligible dependent care expenses are dependent/child care centers, adult day care, nursery school, pre-school, after school and summer day camp programs, and services provided by a housekeeper who provides care for an eligible dependent.
You cannot submit a claim for funds that have not yet been contributed to the account. If you have a claim for $2,000 but have only contributed $1,000 to the account, you will only be
reimbursed $1,000.
How to Enroll
Visit the Benefits tab on UKG during your benefit enrollment window.
The IRS has put into place the “Use It or Lose It” rule which requires participants to forfeit any outstanding balance that remains in the account at the end of the plan year. KIPP NYC has adopted the optional 21⁄2-month grace period extension which allows you to be reimbursed for expenses incurred through March 15 of the following year. If you are enrolled in an FSA and have an outstanding balance after December 31 and also enroll in an FSA for the following year, extending the plan year to 141⁄2 months, any claims incurred during the grace period (through March 15) will first reduce your previous year’s outstanding balance. All claims incurred by March 15 that you would like to be considered against your previous year’s unused balance, must be submitted by March 31. Any unused balance from the prior year will be forfeited after March 31.
Carefully estimate the amount you wish to contribute (use worksheets on the following pages) and make sure your estimated expenses are IRS eligible expenses under the FSA. Visit www.irs.gov for more information on the “Use It or Lose It” rule and to find a listing of eligible expenses.
Healthcare FSA
A Healthcare FSA allows you to pay for healthcare expenses such as medical, dental and vision expenses for you and your qualified dependents that are not reimbursable by your insurance plan. The maximum annual contribution to the Healthcare FSA is $2,750 (or IRS maximum if different).
Examples of eligible healthcare expenses are deductibles, coinsurance, copays, orthodontia, eyewear, saline solution, and amounts exceeding the allowable charge for a service that was performed by an out-of-network provider.
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