Page 21 - 2015 Advia CU Benefits & Notices
P. 21
Advia CU - MI 2015
Flexible Spending Accounts (FSA)
Flexible Spending Accounts let you pay for health care and day
care expenses with tax-free dollars. How much you save depends
on how much you pay in income tax. There are two types of
accounts under this plan: a Health Care Reimbursement Account
(HCRA) and a Dependent Care Reimbursement Account (DCRA).
You may enroll in one or both. Kushner and Company administers
this plan for the Credit Union.
With an HCRA or DCRA, you decide before the start of the year
how much to contribute to each account. Your contributions are
withheld in equal amounts from your paychecks throughout the
year. The money is set aside separate in tax-free accounts. Claim
the money in your account(s) by submitting a claim form for
reimbursement. Claims for the HCRA may be made by utilizing
your Benny FSA Debit card instead of submitting a claim form.
How the Accounts Save You Money Without an HCRA or DCHA With an HCRA or DCRA
$25,000 $25,000
Gross Salary $0 ($2,000)
LESS: Annual Amount Deposited into HCRA / DCRA $25,000 $23,000
($6,250) ($5,750)
Taxable Income $18,750 $17,250
LESS: Annual Taxes (assumed at 25%)
($2,000) N/A
Net Salary
LESS: Out-of-Pocket Medical and/or $16,750 $17,250
Dependent Care Expenses for the Year NONE $500
Disposable Income
Your Tax Savings
HCRA
The HCRA helps you pay for medical, dental, and vision expenses that aren’t covered by
insurance. Your annual election cannot be less than $130 ($5 per pay) or more than $2,550 for
the 2015 plan year pursuant to Health Care Reform. The full amount will be available January
1, 2015. For a complete list of eligible expenses visit the IRS website at
www.irs.treas.gov/pub/irs-pdf/p502.pdf.
Over-the-counter (OTC) drugs and medications, such as those listed below, are not eligible for
tax-free reimbursement UNLESS you have a doctor’s written directive (prescription) for the item:
Acid controllers Anti-Inch/Insect /Bite Digestive aids Pain relief
Allergy and sinus Antiparasitic treatments Feminine anti-fungal/itch Respiratory products
Antibiotic products Baby rash ointments Hemorrhoid preparations Sleep aids/sedatives
Anti-diarrheals Cold sore remedies Laxatives Stomach remedies
Anti-gas Cough, cold and flu Motion sickness
To file a claim for an OTC, get an itemized receipt that shows items purchased, the date
purchased and how much it cost, and send it with a completed claim form and the doctor’s script
for the item(s) listed above. These items cannot be paid with your Benny Card.
Health supplies such as adult incontinence products, pregnancy tests, contact lens solutions and
supplies, diabetic testing supplies, and first aid supplies are eligible for reimbursement without a
prescription.
Salus Group© Copyright 2014 Page | 21
Flexible Spending Accounts (FSA)
Flexible Spending Accounts let you pay for health care and day
care expenses with tax-free dollars. How much you save depends
on how much you pay in income tax. There are two types of
accounts under this plan: a Health Care Reimbursement Account
(HCRA) and a Dependent Care Reimbursement Account (DCRA).
You may enroll in one or both. Kushner and Company administers
this plan for the Credit Union.
With an HCRA or DCRA, you decide before the start of the year
how much to contribute to each account. Your contributions are
withheld in equal amounts from your paychecks throughout the
year. The money is set aside separate in tax-free accounts. Claim
the money in your account(s) by submitting a claim form for
reimbursement. Claims for the HCRA may be made by utilizing
your Benny FSA Debit card instead of submitting a claim form.
How the Accounts Save You Money Without an HCRA or DCHA With an HCRA or DCRA
$25,000 $25,000
Gross Salary $0 ($2,000)
LESS: Annual Amount Deposited into HCRA / DCRA $25,000 $23,000
($6,250) ($5,750)
Taxable Income $18,750 $17,250
LESS: Annual Taxes (assumed at 25%)
($2,000) N/A
Net Salary
LESS: Out-of-Pocket Medical and/or $16,750 $17,250
Dependent Care Expenses for the Year NONE $500
Disposable Income
Your Tax Savings
HCRA
The HCRA helps you pay for medical, dental, and vision expenses that aren’t covered by
insurance. Your annual election cannot be less than $130 ($5 per pay) or more than $2,550 for
the 2015 plan year pursuant to Health Care Reform. The full amount will be available January
1, 2015. For a complete list of eligible expenses visit the IRS website at
www.irs.treas.gov/pub/irs-pdf/p502.pdf.
Over-the-counter (OTC) drugs and medications, such as those listed below, are not eligible for
tax-free reimbursement UNLESS you have a doctor’s written directive (prescription) for the item:
Acid controllers Anti-Inch/Insect /Bite Digestive aids Pain relief
Allergy and sinus Antiparasitic treatments Feminine anti-fungal/itch Respiratory products
Antibiotic products Baby rash ointments Hemorrhoid preparations Sleep aids/sedatives
Anti-diarrheals Cold sore remedies Laxatives Stomach remedies
Anti-gas Cough, cold and flu Motion sickness
To file a claim for an OTC, get an itemized receipt that shows items purchased, the date
purchased and how much it cost, and send it with a completed claim form and the doctor’s script
for the item(s) listed above. These items cannot be paid with your Benny Card.
Health supplies such as adult incontinence products, pregnancy tests, contact lens solutions and
supplies, diabetic testing supplies, and first aid supplies are eligible for reimbursement without a
prescription.
Salus Group© Copyright 2014 Page | 21
