ASI Presentation

Slide1: 

Welcome

Slide2: 

To insert your company logo on this slide From the Insert Menu Select “Picture” Locate your logo file Click OK To resize the logo Click anywhere inside the logo. The boxes that appear outside the logo are known as “resize handles.” Use these to resize the object. If you hold down the shift key before using the resize handles, you will maintain the proportions of the object you wish to resize. Stretch your With the Flex Spending Plan Presented by Copyright 1997

Agenda: 

Agenda Questions What is a Flex Spending Plan? Why should I participate? How do I enroll? When can I enroll?

Flex Spending Plan?: 

Flex Spending Plan? Authorized by Congress in 1978. Today virtually all large employers offer flex spending plans. Enable employees to purchase a limited number of services on a tax-free basis.

Slide5: 

Health Care Flex Spending Account (FSA) Dependent Care Flex Spending Account (FSA)

Why should I participate?: 

Why should I participate? Most employees save at least 25% on services purchased through the plan

How do you arrive at 25%?: 

How do you arrive at 25%? Federal taxes 15% State taxes* 5% F.I.C.A. 7.65% Total 27.65% x $100 = $27.65 *Depends on your state income tax rate.

Sample Check: 

Sample Check Without Plan With Plan Gross pay $1,500 $1,500 Medical Expenses -50 Taxes -244 -231 Net pay check $1,256 $1,219 Medical Expenses -50 Remaining income $1,206 $1,219 $1,219 - $1,206 = $13/month in savings $13 x 12 = $156 extra money each year!

Health Care FSAOut-of-Pocket Medical Expenses: 

Health Care FSA Out-of-Pocket Medical Expenses

Advantages: 

Advantages You save income tax on all medical bills paid through the plan Expenses for your dependents qualify whether or not you include them on your health insurance You choose how much you are going to use

Eligible Expenses: 

Eligible Expenses All medical expenses as defined in Section 213 of the Internal Revenue Code with the exception of insurance premiums and long term care. Qualifying expenses for you or your dependents whether or not on the your employer’s insurance policies Any medical service provided during the plan year that insurance does not reimburse

Medicines & Drugs: 

Medicines & Drugs Prescription drugs Over-the-Counter drugs & medications. Used to treat an existing or imminent medical condition.

Over-the-Counter: 

Over-the-Counter Additional claims requirements Cannot claim items used for general good health. Cannot claim items not purchased to treat a specific existing or imminent condition

Co-pays, Deductibles, Transportation: 

Co-pays, Deductibles, Transportation

Select your level of coverage: 

Select your level of coverage Example: $600 for the plan year contributed each paycheck for 24 checks = $25.00 per check Up to $5,000

Incur the expense: 

Incur the expense

Slide19: 

a written statement from the provider. Send to ASI along with

Receive payment: 

Receive payment Deposited directly into your bank account Payments are made within one day of receipt

Slide21: 

E-mail Direct deposit only Get off the snail mail, get on the fast tract. - e-mail

Reduces medical costs: 

Reduces medical costs Cost of medical care without plan $100 Cost of medical care with plan $75 $25 TAX SAVINGS

Dependent Care FSAChild/Adult Dependent Care: 

Dependent Care FSA Child/Adult Dependent Care

Eligible Dependents: 

Eligible Dependents Children under the age of 13* Older dependents unable to care for themselves Must live in your home at least 8 hours per day *Must be the custodial parent with over 50% custody if divorced.

Eligible Expenses: 

Eligible Expenses Day care services General purpose day camps Babysitters Pre-school

Ineligible Expenses: 

Ineligible Expenses Costs of food and transportation if itemized Educational expenses such as private schools, kindergarten, sports camps (soccer, basketball, etc.) Overnight camps Cannot pay your spouse or any other dependent of yours Cannot pay your child under 19, even if he/she is not your dependent

Credit or Dependent Care Plan?: 

Credit or Dependent Care Plan? Credit limited to $3,000 per child in day care with a maximum of $6,000 Dependent Care FSA generally limited to $5,000 regardless of number of children In most instances the Dependent Care FSA is better for families with combined gross income over $31,000 or who spend over $3,000 for only one child in care Consult your tax advisor

Slide28: 

Tax Credit FSA Adj. Gross Inc. $35,000 $35,000 Day Care Costs 0 Taxable pay 35,000 Total taxes -5,412 Take home 29,588 Day Care Costs Yours to keep Additional tax savings with plan = $132 -5,000 $23,720 30,000 -5,280 24,720 1,000 -6,000 $23,588

Select your level of coverage: 

Select your level of coverage Example: $2,400 for the plan year contributed each paycheck for 24 checks = $100.00 per check Family maximum of $5,000/year

Day Care Services Provided: 

Day Care Services Provided

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Send along with a written statement from the day care provider.

Receive payment: 

Receive payment Deposited directly into your bank account Payments are made within one day of receipt. Payment is limited to funds currently available.

Slide34: 

Direct Deposit/E-mail Direct deposit only Email also available

Important messages from Uncle Sam: 

Important messages from Uncle Sam

Cannot carry balance over to next yearUnused funds will go back to your employer : 

Cannot carry balance over to next year Unused funds will go back to your employer

Funds in one category cannot apply toexpenses in another category : 

Funds in one category cannot apply to expenses in another category

Expenses for servicesprovided during the Plan year: 

Expenses for services provided during the Plan year

Your election will be for the full year - unless...: 

Your election will be for the full year - unless...

Change in: 

Change in Legal Marital Status Number of Dependents due to birth, adoption or death Employment Status Must result in a gain or loss of eligibility and coverage. Change must correspond with that gain or loss.

Or on account of: 

Or on account of FMLA leave Dependent ceases to qualify for day care (dependent care only) You change dependent care providers

Summary: 

Summary 100% tax exempt Choose your options Election fixed for 1 year Services must be provided during plan year Best way to pay for predictable expenses

Slide43: 

www.asiflex.com Click on Key your P.I.N. (Provided on your enrollment confirmation) No identifying information provided such as name, address, employer, or Social Security Number Accessed by P.I.N. provided with confirmation Updated each night Personal Account History

More Information: 

More Information Information from the University Call 1-800-659-3035 www.asiflex.com World Wide Web

Enrollment: 

Enrollment Open enrollment this year November 1 - 30 You must enroll to take advantage of the tax savings Enroll on the Web You will have an opportunity to enroll each year