Frequently Asked Questions

The Q and A of Flexible Spending Accounts

IPG Employee Benefits

1. What is a FSA?
A Flexible Spending Account (FSA) is a benefit plan that enables you to set aside a portion of your paycheck, on a pre-tax basis, to pay for health, dental, vision, prescriptions, and some over-the-counter items.

2. What is a Dependent Care Assistance Plan?
A Dependent Care Assistance Plan (DCAP) is a benefit plan that enables you to set aside money from your paycheck on a pre-tax basis. This money can be used to pay for eligible day-care expenses for your children or adult dependents.

3. How do FSA Plans save on taxes?
Your employer will deduct the amount that you elect in equal installments from each paycheck. Every dollar that you deposit to an FSA is done on a pre-tax basis and will not be taxed for FICA or Federal Income Tax.

4. Is there a limit on how much money I can put into my FSA or DCAP?
Currently, your employer sets the maximum amount that you can put into your FSA each year. Beginning January 1, 2013, employees will be allowed to put a maximum of $2500.00 into their FSA annually. This regulation has been changed with the health care reform that was signed by President Obama in March of 2010.

The maximum amount that you can elect to put into your DCAP is $5000.00 each year. That amount has not changed with the health care reform legislation.

5. How do I file a claim?
Claims are processed in our Keene, New Hampshire office. You can mail, fax, email or drop off a claim. The office is open Monday through Friday from 8:30 a.m. until 5:00 p.m. Our contact information is:

IPG Employee Benefits
85 Washington Street
Keene, NH 03431
603-357-2707 (office)
603-358-6882 (fax)
info@ipgbenefits.com (email)

6. What do you look for when a claim is reviewed?
Is the expense an eligible item? The expense must fall within the legal definition of medical care as defined in CodeS 213(d).
Who is the expense for? The expense must have been incurred by the employee, spouse or an eligible tax dependent.
When was the expense incurred? The expense must fall within the employer's FSA plan year
How much is the expense? The amount of the expense must be within the plan limits.
Why was the expense incurred? The expense must primarily be for a medical purpose and not for cosmetic or general well being.

7. Where can I get a claim form?
You can obtain a claim form from the IPG website. Go to www.ipgflex.com. Click on the drop down menu under FSA Resources and click on IPG Flex Reimbursement Claim Voucher. You can also contact IPG and we an mail you a Reimbursement Claim Voucher.

8. What happens if I do not use all of the money that I put into my FSA by the end of the plan year?
By law, employers are not allowed to return leftover money to employees, so any money left in your account will be forfeited. Most companies will use the leftover money to offset the cost of administering the plan.

9. When do I make my FSA election?
You choose your FSA contribution amount during open enrollment. This is also the time of year you can elect and/or change your benefits such as medical, dental, etc.

10. When can I change my FSA election?
Once your contribution election becomes effective, you won't be able to change it until the next open enrollment period, unless there is a change in your eligibility status (e.g., marital status, having or adopting a child, etc.).
You must check with your employer for specific eligibility status change rules.

11. What types of expenses are covered under my FSA?
An FSA covers eligible healthcare expenses that are not paid for by your health insurance. Some examples of FSA eligible expenses include: deductibles, co-insurance, co-payments, eye exams, contact lenses, eyeglasses, prescription drug co-pays, dental care, orthodontia, physical therapy, chiropractic care, hearing aids and some over the counter items.

12. What types of expenses are not covered under my FSA?
Items like insurance premiums, toothpaste, electric toothbrush, shampoo, vitamins, and soap are not covered under your FSA because they are considered necessary for general well being, and not medically necessary under the definition of Code S213(d).

13. Can I continue my FSA on COBRA?
You may continue your FSA on COBRA provided there is a positive balance in your FSA when you seek to continue coverage. A positive balance means you have contributed more to your FSA year-to-date than you have received in reimbursements. You should contact your employer to determine the cost of COBRA continuation coverage.