Flexible Spending Account
Flexible Spending Accounts let you set aside a portion of your paycheck tax free to pay for certain health and dependent care expenses. Contributions are deducted from your paycheck prior to federal, state and social security taxes.
Frequently Asked Questions
How much can I allocate?
The IRS limits dependent care contributions to $5000 per tax year (joint return). The medical reimbursement plan limit is set by employer up to the IRS maximum of $2550 (effective 2015).
Can my medical and dependent care expenses be combined?
No. The IRS requires separate accounts be funded for each.
How do I know if an expense is eligible?
Eligible expenses are listed in the IRS Publication 502, or a partial list may be viewed on Cafeteria Plan website.
How do I keep track of my balance?
You can set up online access by logging on to www.cpa125.com.
How long does the plan last?
The plan year runs twelve months. The employee has to enroll each plan year.
What if I want to make a change during the year or I terminate employment?
This amount may be increased or decreased annually only during open enrollment. The IRS allows some changes to be made in the event of a ‘change in status’ qualifying event such as birth, death, marriage, divorce or a change to you or your spouse’s employment. If you terminate, your participation in the plan ceases on your termination date.
Will I get money back if it is not used?
No, the IRS does not allow unused funds to be returned. It is important to calculate your expenses precisely so not to forfeit any dollars.
How will I get reimbursed for expenses?
If your plan offers a prepaid debit card, you will receive two cards in the mail upon enrollment. Once you activate the card, just present the card when paying for the services performed or expenses incurred. If you are unable to use the prepaid debit card or you were unable to use the card, simply submit a manual claim form with itemized receipts after the services/expense was incurred. You can submit claims as frequently as you like, but no later than after the grace period deadline date after your plan year ends (typically 90 days). Dependent care accounts must have funds available before payment can be made.
Cafeteria Contact Information
Cafeteria Plan Advisors, Inc.
420 Washington Street, Suite 100
Braintree MA 02184
Office hours: M-F, 8-4:30pm
Keep in mind
- Flexible spending account calendar runs from January-December.
- Annual Open Enrollment occurs during the month of December of each year.
- New hires: please ensure to estimate the amount needed from the date of hire until the end of December.