Everyone knows the old adage that declares "an ounce of prevention is worth a pound of cure." This time-honored wisdom certainly makes sense. We wouldn't wait until we were riding on the wheel rim ...View Article
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What is a Flexible Spending Account (FSA)?
Flexible Spending Accounts or FSAs for short, are tax-advantaged benefit programs that allow employees to use pre-tax money to pay for eligible healthcare expenses.
What is the difference between a FSA and a HSA?
Health Savings Accounts (HSAs) are similar to FSAs except unspent funds roll over and accumulate year to year.
Is chiropractic an allowable FSA/HSA expense?
Yes, it is. You can include chiropractic fees you paid for yourself, as well as for someone who was your spouse or your dependent either when the services were provided or when you paid for them. For additional information, visit the Internal Revenue Service at IRS.gov.
What type of FSA covers chiropractic?
Chiropractic is covered by a ‘standard’ FSA and not by a limited purpose FSA. A limited purpose FSA can only be used for vision and dental expenses. A standard FSA covers all eligible medical expenses, including chiropractic treatments.
Does the “use-it-or-lose” it rule still apply to FSAs?
- A new ruling issued by the IRS (in Oct. 2013) amends the “Use-or-Lose” ruling, and now allows up to $500 in unused funds to be rolled over and used in the following plan year.
- Plans that have a grace period option give employees a two-and-a-half month extension to spend remaining FSA funds for a limited time after January.
- FSAs cannot have both a carryover and a grace period option (it’s one or the other), and employers are not obligated to offer either extension.
- Talk to your HR or benefits manager about the specifics of your FSA plan.
How much can I contribute to my FSA?
- For tax year 2015, the Internal Revenue Service announced the inflation-adjusted contribution limit for health flexible spending accounts (FSAs) will go up by $50, to $2,550.
- The $500 carryover will have no impact on the maximum $2,550 contribution limit. This means in 2015 an employee can have up to $3,050 in a FSA to pay for medical expenses not covered by their medical insurance, like co-pays, deductibles, dental, vision care, prescriptions and chiropractic care, among other qualified expenses.
How do I use my FSA at Gallagher Wellness Centre?
At Gallagher Wellness Centret, your flexible spending account is used just like any standard debit or credit card. So upon visiting our clinic, present your flexible spending card at time of purchase and you will be able to use your pre-tax money to pay for your visit. In the case that you are asked to turn in additional documentation by the bank managing your flexible spending account, simply contact your home clinic and request payment records for the specific period of time.
The information contained on this page provides a general summary regarding flexible spending accounts, is intended for informational purposes only, does not purport to be complete and does not constitute tax, legal or accounting advice. Neither Gallagher Wellness Centre nor any of its agents or employees is offering tax, legal or accounting advice. Anyone interested in the topics presented on this page should seek advice based on his or her particular circumstances from his or her own independent professional advisors.