More About The Reimbursement Accounts

The following information applies to both the Health Care and Dependent Care Reimbursement Accounts, as noted. It's important that you read this information before deciding to enroll in a Reimbursement Account, and that you refer to it periodically, so that you use the Reimbursement Accounts properly.

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Reimbursement Account Rules

Health Care and Dependent Care Reimbursement Accounts are governed by a variety of IRS rules and restrictions. The following guidelines address some of these issues and may help you decide whether to participate.

Plan your expenses carefully—Reimbursement Accounts are "use it or lose it" benefits.

That is, you forfeit any money left in a Reimbursement Account after the end of the Plan Year. You may not carry any money over for use in the next Plan Year or receive a refund of your unused contributions. Note: any money that is forfeited is applied toward A&B’s cost of administering the Reimbursement Account program.

You have until March 31 of the following year to file claims for expenses you have incurred before December 31 of the current Plan Year (or, for the HCRA, before the date your employment ends, if applicable). For example, you will have until March 31, 2010, to file claims for expenses incurred through December 31, 2009.

You may not transfer money between pre-tax Accounts, nor may you use funds from your HCRA to pay for dependent care expenses (or vice versa).

If you want to reimburse yourself for eligible health care and day or elder care expenses, you must open both a HCRA and DCRA, respectively.

You may not claim a tax credit or deduction for any expenses for which you receive a reimbursement from a Reimbursement Account.

However, you may claim a tax credit or deduction for any expenses not reimbursed through an Account, subject to IRS rules.

Once you enroll in a pre-tax Reimbursement Account, you may not change your election or contribution levels for the rest of the year.

The only exception to this rule is if you have a qualifying change in status, and you notify your local Human Resources representative within 31 days of the status change. In this situation, you may change your DCRA election only—you may not change your HCRA election during the year for any reason. For more details, see Changing Your FlexSolutions Elections During The Year.

Because contributions to a DCRA or HCRA reduce your taxable income, your payroll taxes and Social Security contributions will be reduced.

The effect on your future Social Security benefits will generally not be great because they are based on your lifetime of covered earnings. For more information, check with your local Social Security Office regarding your particular situation.

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Filing For Reimbursement

During the year, whenever you have an eligible expense, you can file a reimbursement request from the appropriate reimbursement account (claim forms are available on the "Forms" section of A&B's benefits website, www.flexab.com or the Company intranet). Keep in mind that you may only request reimbursement for expenses that were incurred before you file for reimbursement but after you enrolled in the applicable Account.

There are several options for you to choose how you want to be reimbursed:

  • By check,

  • By direct deposit to your checking account, or

  • By using a special PayFlex MasterCard ("debit card"), which will pay for your expenses directly from your Reimbursement Account. Remember to keep all receipts for expenses that you pay for with the debit card. Claims are periodically subject to audit by the Claims Administrator; if you do not provide the requested documentation, your debit card may be inactivated and you may be asked to make reimbursement back to the Claims Administrator for the audited claim.

You may file as frequently as you want. When submitting a claim for reimbursement, be sure to accompany your claim with proof of payment, such as itemized bills or the "Explanation of Benefits" (EOB) form you received from your health care plan. Reimbursements will be processed daily and mailed to your home.

You will have until March 31 of the following year to file for expenses incurred in the previous year.

If you have any questions, you should contact PayFlex, the Reimbursement Account Administrator, at 800-284-4885, Monday through Friday, 8 a.m. to 5 p.m. Central Time.

Filing Health Care Reimbursement Account Claims

In most instances, you must first file a claim through your medical, dental or vision plan before you may file for reimbursement from your HCRA; or, if you do not generally have to file a claim for benefits, you must be able to provide proof of the out-of-pocket expenses you incurred.

Then, request reimbursement from your account using the reimbursement method you chose when you enrolled in the Plan. If you elected payment by check or by direct deposit, include the Explanation of Benefits (EOB) form or other proof of expense you received from the applicable health care plan or provider, and return it to PayFlex, the Reimbursement Account Administrator. The claim form includes the Claims Administrator's address and the what types of proof of payment are acceptable. Please read the claim form carefully and provide the documentation requested.

Health care claims will be reimbursed up to your annual contribution target, less any previous reimbursements, regardless of the balance in your account at the time the claim is filed.

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Filing Dependent Care Reimbursement Account Claims

Each time you submit a claim for reimbursement from your DCRA, you must include the...

  • Provider's name,

  • Taxpayer identification or Social Security Number (if the latter is required as explained under IRS Reporting Requirements ),

  • Date of services,

  • Amount, and

  • Dependent's name.

Dependent care claims will only be reimbursed up to the amount accumulated in your account at the time the claim is filed. If your DCRA balance is less than the eligible claim expense, you will be reimbursed up to the amount in your account at the time of your request; you will then continue to be reimbursed for that claim as you make additional contributions.

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Access To Your Account And Statements

You have 24-hour access to your account balances through PayFlex's website at www.payflex.com. For your first visit to the website following enrollment, enter your Social Security number as the member ID and your home zip code as the password; you will be asked to change your password for security purposes. You may also call PayFlex Participant Customer Service at 800-284-4885, Monday through Friday, 8 a.m. to 5 p.m. Central Time.

In addition, you will receive a statement for your Reimbursement Account(s) each quarter. This statement will summarize the activity of your Account. Your reimbursement checks will also include an Account summary.

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When Your Participation Ends

Your Reimbursement Account contributions will stop if...

  • Your employment with A&B ends,

  • You are on an unpaid leave of absence and you have not prepaid your contributions or arranged to make after-tax contributions during your leave (see Qualifying Status Changes),

  • You are no longer eligible to participate (see the applicable portions of this section and Who Is Eligible for eligibility information), or

  • A&B terminates the Plan.

You will be able to receive reimbursement for any...

  • Dependent care expenses incurred during the same Plan Year, up to the balance of your DCRA, and

  • Health care expenses* incurred before your termination, up to the annual amount you elected to contribute to your HCRA.

* Information regarding continuing your HCRA participation on an after-tax basis through COBRA is provided below.

Continuing Your Reimbursement Account Participation

You may continue to contribute to your HCRA under COBRA after you leave A&B. However, your contributions will be made on an after-tax basis. You may want to consider this option if you...

  • Do not have any outstanding expenses eligible for reimbursement from your HCRA at the time your participation would otherwise end,

  • Have money left in your Account, and

  • Expect to have eligible expenses after you leave A&B but before December 31.

You may not file for reimbursement for expenses you have incurred afteryou leave A&B, unless you continue to contribute after-tax dollars through COBRA. For information about COBRA Continuation Coverage see More About Your Health Care Benefits.

Note that IRS regulations do not allow you to continue to contribute to your DCRA after you leave A&B.

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