In 2012, employees can contribute up to $5,000.00 to their employer sponsored plans. Beginning in 2013, the limit will be lowered to $2500.00 so people should be looking to take advantage of the benefit offered to them in 2012.
San Diego, CA (PRWEB) November 03, 2011
According to many reports, the time of year is here when employees elect to put money into their employer sponsored flexible spending accounts [FSA’s] for 2012 or decide how to use the remaining money on in 2011. Today, about 85% of large employers have FSA’s for their employees. President Obama’s health care reform has made some important changes to 2013 FSA plans allowable expenses and the amount individuals can contribute.
In anticipation of meeting the October 31 signup deadline for many employer sponsored plans beginning January 1st the following year, patients go to their doctors to determine whether they might be good candidates for contact lenses, LASIK or dental procedures. Employees want to know before they elect to have money taken pretax out of their paychecks they can use for medical expenses. The use of FSA money enables savings of between 20-50% by paying with pretax dollars.
“Some major changes were made to the plans as part of health care reform” says Dr. Sandy T. Feldman of ClearView Eye & Laser Medical Center. The doctor states that “In 2012, employees can contribute up to $5,000.00 to their employer sponsored plans. Beginning in 2013, the limit will be lowered to $2500.00 so people should be looking to take advantage of the benefit offered to them in 2012.1,2”
To obtain your maximal benefit, it is crucial to understand and ask the employer about these new rules, Dr. Feldman shares these helpful and important tips: Obtain a doctor’s prescription for non-prescription otherwise known as over the counter drugs. Submit a doctor’s prescription along with a receipt for this medication in order to be reimbursed.3 There has been an expansion in the rules so adult children can be considered dependant if less than 27 years of age, even if living independently. Many people fail to completely use all of their contribution and end up losing about $100.00.4 Employees should check with their employers of any remaining amounts and determine the end date for usage. They should not wait until the last minute. Some plans have a grace period extending usage from the prior year now to March 31st.
Overall, employees should be aware of their benefits and the timelines for electing to contribute and use their FSA benefits. Enroll in FSA’s now for maximal contribution especially if contemplating LASIK surgery.
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