Flexible Spending Accounts
Flexible Spending Accounts (FSA’s) allow you to use pretax money to pay for necessary health care and dependent care expenses, thus allowing you to save taxes. By participating in the FSA, you lower your taxable income and then can be reimbursed for qualified expenses with tax free money. Important: All pretax funds that are not used for eligible expenses incurred during the plan year will be forfeited. This is mandated under the IRS “use it or lose it” rule. To avoid forfeiture, you should plan carefully. Elections cannot be changed during the plan year unless you experience a qualifying event. The Town of Marana offers the Flexible Spending Accounts to all benefit eligible employees through our FSA provider, ASI Flex.
Medical Flexible Spending Accounts
Medical FSAs can be utilized for your own, your spouse and your dependents’ non-reimbursed expenses including medical, dental, vision, copays and prescription drugs and some over the counter products. Visit www.asiflex.com/EligibleExpenses.aspx to get a complete list of qualified expenses.
You may elect to contribute up to $2,700 per year as of 2024. The minimum annual election is $100. Employees electing the HD/HSA plan cannot enroll in the Medical FSA.
Benefits Debit Card (Medical FSA Only)
The benefits debit card is free and can be used to pay your medical, dental. vision and prescription expenses, including co-pays, deductibles and co-insurances (some transactions may be immediately approved if they fall on the co-pay schedule while others may require you to submit a receipt as supporting documentation.
The debit card may only be used in conjunction with your Medical FSA and not your Dependent Care FSA. You do not need to elect to receive the benefits debit card, you will automatically receive one if you elect a medical flexible spending account. It is your option to use it or request a reimbursement if you choose to use another method of payment.
If you choose not to use the card, you may complete and submit a reimbursement request form with the receipt/statement attached and a check will be sent; or the amount can be direct deposited at no expense to you.
Ineligible Expenses
Some expenses you incur during the year may not be eligible for reimbursement under current IRS regulations. For a complete list of ineligible expenses, see IRS Publication 502 “Medical and Dental Expenses,” visit the IRS website: www.irs.gov. If ASI Flex needs to review a receipt to determine if the expense was eligible, they will send you a receipt reminder. If you don’t respond, ASI Flex may deactivate the debit card after 72 days. Transactions requiring supporting documentation will become taxable income if the receipt is not provided before the end of the plan year reconciliation. Be sure to retain your receipts for tax reporting purposes should you be audited by the IRS.
Dependent Care Flexible Spending Accounts
Dependent Care FSAs are for daycare expenses for dependents up to the age of 13 and disabled spouse/dependent of any age. You may elect from $100 minimum up to $5,000 maximum ($2,500 if married filing separately). Elections cannot be changed during the plan year unless you experience a qualifying event. All qualifying events must be reported to the HR department within 30 days to allow changes to be made.
You may elect to enroll in a Health Care Spending account and/or a Dependent Care Spending account.
You can use the FSA Calculator to estimate how much to contribute based on your anticipated medical expenses. It also calculates how much you can save in taxes by contributing pre-tax dollars into your FSA.
ASI Flex Website and Contact Information
Visit www.asiflex.com to create a personal login to access forms, balances, payment status, debit card activity and submit claims. You can also speak to a live representative Monday through Friday 6 am – 6 pm and Saturday 8 am - noon (MST) toll free (800) 659-3035.
Additional Resources
