The first way to receive tax savings is to elect for your District sponsored insurance premiums to be taken out of your paycheck pre tax.
Your insurance premiums are paid directly to the insurance company requiring no paperwork from you.
This election must be made during the online enrollment process and can be changed annually at open enrollment.
HSA participants are NOT eligible for the Medical Flexible Spending Account but may establish a Limited FSA (see below)
The Medical FSA helps you pay for eligible health care expenses not paid by insurance; it does not replace an insurance plan, but it can help you get more for your money by using pre-tax dollars on out-of-pocket health care services. The IRS limits how much you can contribute each year. The limit for 2019 is $2,700 per person. The limit for 2020 is $2,750 per person.
The IRS limit is per person and not per family. Therefore, if a husband and wife both participate in their respective employer’s FSA plans, each cannot contribute more than the individual IRS limit.
Generally, any health expense (except for cosmetic procedures and insurance premiums) that is considered tax deductible can be paid through your medical spending account. You can use your medical spending account to pay expenses for you, your spouse, and your eligible children, even if they are not enrolled in a Lee’s Summit School District medical plan. You can file claims for any amount up to your total annual contribution amount at any time during the year, even if you have not yet had that amount withheld from your pay. You will receive a reimbursement for your entire claim. You will simply continue to make your contributions each paycheck to cover the claim. A brief listing of the most common eligible expenses can be found at the top of this page.
If you are enrolled in a Section 125 Medical Flexible Spending Account (FSA-Medical) for 2019 and enroll in a Health Savings Account (HSA) for 2020, you must have a $0 balance in your FSA as of December 31, 2019. There are specific IRS regulations when FSA participants enroll in an HSA. For additional information, please contact the District’s Benefits Specialist at (816) 986-1046.
(ONLY for HDHP PPO Enrollees with HSA)
HDHP enrollees who contribute to a Health Savings Account (HSA) are ineligible to contribute to a regular Medical FSA, but do have the option of enrolling in a Limited FSA. The Limited FSA allows reimbursement of you and your dependents’ dental and vision expenses only.
You can always run your dental and vision expenses (ex: orthodontics, Lasik, etc) through your HSA, but you may choose to open a Limited FSA in order to maximize the savings potential of your HSA, or if you or your dependents have dental and/or vision expenses which exceed the amount you are allowed to contribute to an HSA.
Like the regular Medical FSA, the IRS limits how much you can contribute each year. The limit for 2019 is $2,700 per person. The limit for 2020 is $2,750 per person. Estimate conservatively as unused funds at the end of the plan year are forfeited.
The IRS limits how much you can contribute each year into a Dependent Care FSA. The limit for 2019 and 2020 is $5,000, or $2,500 if married but filing taxes separately. The “use it or lose it” rule also applies to Dependent Care FSA. You can be enrolled in both a Dependent Care FSA and HSA.
You may choose the 9 month option with deductions from your January through May and September through December paychecks or you may choose the 12 month option with deductions from your January through December paychecks.
Expenses paid through your Dependent Care spending account must be incurred solely for the purpose of either allowing both you and your spouse to work or look for work; or allowing you to work while allowing your spouse to attend school full-time. Furthermore, these expenses must be for the care of a child under age 13, or for a dependent who is not capable of self-care. If you are paying an individual for day care services, that person will need to report any income received from you to the IRS. You will need to provide the name, address and social security number/tax identification number of your day care provider on your reimbursement claim form and federal income tax forms.
You will be reimbursed from the Dependent Care spending account only up to the amount you have contributed at any given time. If you submit a reimbursement claim which is larger than your account balance.
Please check with your tax adviser to help you determine whether the current dependent care income tax credit or the Dependent Care FSA will be most beneficial to you based upon your income and tax bracket.