Agenda Packets - 1986/03/03 - Laserfiche WebLink

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released. Employees become general creditors of the employer to the extent of the outstanding reimbucseable claims• 1 AN EXAMPLE ... Let's say that my employer decides to sponsor a health care flexible spending account. In order to determine if I Should join, I first figure out how much my out-of-pocket expenses were last year and how much I expect them to be in the next year-- $1,00C in my case. Because I am in the 25% tax bracket, joining the plan should save me over $300! So, using the enrollment form, I sign up to put $40 per semi-monthly paycheck into my health care FSA ($960 per year). 'Then, as I incur out-of-pocket health care expenses, I pay them myself and fill out the expense reimbursement claim form. i am careful to keep my receipts and ' other forms of documentation, because compliance with the plan is my responsibility, and if I can't produce this evidence if requested by the IRS, I could be liable for tax fraud. If I have enough expenses to meet the minimum required by the plan for reimbursement l$50 in this case), I submit my claim form to the plan administrator. Once each month I will be reimbursed for my expenses to the extent of the balance of my account. For example, if I have a $240 balance, and I submit a $200 claim, I will receive $200 (income tax-free) from my account. If I submit a claim for $300, however, I will only receive $240 on the payment date, since that's all the money I have in my account. The other $60 will Le held in suspense until I have made twu more