Page 17 - 2015 Advia CU Benefits & Notices WI/IL
P. 17
Advia CU – WI/IL 2015
If you contribute to a DCRA, you must file an IRS Form 2441 with your Federal Income Tax
Return. Form 2441 is simply an informational form on which you report the amount you paid and
who you paid for day care.
“Use It or Lose It” – Sounds Scary? Don’t Let It Scare You!!!
The IRS says that money left in an HCRA or DCRA account at the end of the year has to be forfeited. People
call this the “Use It or Lose It” rule. This may sound scary, but do not let it keep you from enrolling in these
accounts and benefiting from its tax advantage. You can avoid losing any money with just a little pre-
planning
Many medical out-of-pocket expenses are predictable. If you say “Every year I pay my medical deductible”,
why not put the amount of the deductible into the HCRA and pay with tax-free money? Or perhaps you have
one or two prescriptions each month that combined have a cost of $65. Set aside $780 ($65 x 12) and pay
the copays with the tax-free dollars.
NEW in 2015 – IRS regulations released in late 2013 allow FSA plans to permit up to $500 of un-
used medical reimbursement dollars to be transferred into the next plan. Advia CU has amended its FSA
plan document to permit transfer forward for 2015. is means at the end of 2015, any unused money in
your medical FSA account up to $500, can be pushed into the 2016 plan.
Salus Group© Copyright 2014 Page | 17
If you contribute to a DCRA, you must file an IRS Form 2441 with your Federal Income Tax
Return. Form 2441 is simply an informational form on which you report the amount you paid and
who you paid for day care.
“Use It or Lose It” – Sounds Scary? Don’t Let It Scare You!!!
The IRS says that money left in an HCRA or DCRA account at the end of the year has to be forfeited. People
call this the “Use It or Lose It” rule. This may sound scary, but do not let it keep you from enrolling in these
accounts and benefiting from its tax advantage. You can avoid losing any money with just a little pre-
planning
Many medical out-of-pocket expenses are predictable. If you say “Every year I pay my medical deductible”,
why not put the amount of the deductible into the HCRA and pay with tax-free money? Or perhaps you have
one or two prescriptions each month that combined have a cost of $65. Set aside $780 ($65 x 12) and pay
the copays with the tax-free dollars.
NEW in 2015 – IRS regulations released in late 2013 allow FSA plans to permit up to $500 of un-
used medical reimbursement dollars to be transferred into the next plan. Advia CU has amended its FSA
plan document to permit transfer forward for 2015. is means at the end of 2015, any unused money in
your medical FSA account up to $500, can be pushed into the 2016 plan.
Salus Group© Copyright 2014 Page | 17
