Flexible Spending Accounts
A great way to save money over the course of a year is to participate in the Flexible Spending Accounts (FSAs). These accounts allow you to redirect a portion of your salary on a pre‐tax basis into reimbursement accounts. Money from these accounts is then used to pay eligible expenses, such as health plan copays, dental work, doctor's fees, eye exam, glasses and contact lenses, LASIK eye surgery, hearing aids, chiropractic care, lab fees, and dependent care expenses. The District's Flexible Spending Accounts is administered by Self Insured Schools of California (SISC).
You may use the Health Care Spending Account, the Dependent Care Spending Account, or both. When you enroll, you decide how much money to contribute to your personal accounts for the coming year. These contributions are gradually deducted from your paychecks throughout the year and deposited into your account.
Health Care Spending Account
This account will reimburse you with pre‐tax dollars for health care expenses not reimbursed under your family's
health care plans. Eligible expenses may be incurred by you or your eligible dependents as defined by the IRS. Dependents do not need to be enrolled in the District's health plans to incur reimbursable expenses.
Change in the Maximum Health Care FSA Reimbursement Limit
- Effective January 1, 2013, the maximum salary reduction amount for the Health Care Expense account will be
$2,500. This is part of Health Care Reform.
Dependent Care Spending Account
This account will reimburse you with pre‐tax dollars for daycare expenses for your child(ren) and other qualifying dependents. Qualifying dependents include 1) Children under the age of 13 who qualify as dependents on your federal tax return and 2) Children or other dependents of any age who are physically or mentally unable to care for themselves and who qualify as dependents on your federal tax return. You may use the federal childcare tax credit and the Dependent Care Spending Account; however, your federal credit will be offset by any amount deferred into the dependent care plan.
The maximum amount you may contribute for the Plan Year January 1 through December 31, 2013 is $5,000 a year or $2,500 if you are married and file separate tax returns.
How your FSA Account Works
- Each year during the Open Enrollment period, you decide how much you want to contribute to the Health Care and/or the Dependent Care Spending Account.
- Each pay period, the money deducted before taxes is withheld in equal increments from your pay and contributed to your Health Care and / or Dependent Care spending account(s).
SISC Flex Card
Employees who enroll receive two cards the first year they enroll. The cards are good for 3 years, and are reloaded yearly with the new election amount. Your SISC Flex Card cannot be used at dependent care facilities. Use your card to pay for eligible expenses at the point of sale, thereby reducing having to pay out of pocket and waiting for a reimbursement check. The SISC Flex Card works like a credit card. Even though it says "Debit" on the front of the card, when making a purchase with a keypad or screen, select credit. The card does not have a PIN so you must select credit and sign for the transaction. You cannot get cash with the card. When making a purchase without a keypad or screen, give your card to the clerk and sign the receipt. If you are asked whether it's a credit or debit purchase, say "credit." If debit is used, your purchase will be declined. When necessary, you will be required to furnish receipts and documentation for review so save all receipts. Claim forms and instructions are available on the SISC website at http://sisc.kern.org/flex/ or call (661) 636‐4416 or (800) 972‐1727 ext. 4416 for more information.
- Only qualifying medical and dependent care expenses incurred during the plan year will be eligible for reimbursement. Use it or lose it! Money in the accounts must be claimed within 90 days after the end of the plan year or it will be subject to the "use‐it‐or‐lose‐it" rule and be forfeited.