Flex Spending Accounts
- Samford offers two flexible spending accounts: medical spending and dependent care spending.
- Payroll deductions for the flexible spending accounts are made pre-tax.
- Any money left in the account at the end of the plan year will be forfeited.
- You do not have to be enrolled in the medical and dental plans to participate in the flex spending accounts.
- Use this link for a listing of eligible expenses.
- You can access your account information online via the Professional Benefits Group website: www.pbg-ala.com Click on Flex Status, Enter your SSN in both the id and password fields (after your initial login you can change your password if you wish)
Medical Spending Account
- The medical spending account allows participants to contribute money before federal taxes to an account which can then be used to reimburse medically necessary expenses that are not covered by your medical and dental insurance plan.
- The maximum yearly contribution to medical spending for 2009 is $3000.00
- Examples of eligible expenses include but are not limited to calendar year deductibles, co-pays, over the counter medicines, lab fees, prescription medications, and first aid.
Dependent Care Spending
- Dependent care spending is an account which allows participants to contribute money before taxes to an account which can then be used to reimburse dependent care expenses.
- Maximum contribution for the dependent care spending account is $5000.00
- Examples of eligible dependent care expenses include but are not limited to payments made for child care outside your home and payments made for child care service provided within your home.
Example of How Pre-Tax deductions reduce taxes:
Example of How Pre-Tax deductions reduce taxes:
In the following example, this employee earns $1,800.00 monthly. The first column shows his pay without pre-tax deductions. The second column shows his pay with the following pre-tax deductions: $50.00 to medical spending account (MSA), $200.00 to the dependent care spending account (DSA), and $116.00 for medical and dental premiums (M/D).
Without With
Flex Flex
Gross Pay $ 1,800.00 $ 1,800.00
Salary Reductions: HSA $ 0.00 $ 50.00(MSA)
$ 0.00 $ 200.00(DSA)
$ 0.00 $ 116.00(M/D)
Taxable Income $ 1,800.00 $ 1,434.00
Federal $ 207.00 $ 147.00
FICA $ 137.70 $ 109.70
State $ 57.98 $ 43.05
Total Tax $ 402.68 $ 299.75
After Taxes $ 1,397.32 $ 1,134.25
In the following example, this employee earns $1,800.00 monthly. The first column shows his pay without pre-tax deductions. The second column shows his pay with the following pre-tax deductions: $50.00 to medical spending account (MSA), $200.00 to the dependent care spending account (DSA), and $116.00 for medical and dental premiums (M/D).
Without With
Flex Flex
Gross Pay $ 1,800.00 $ 1,800.00
Salary Reductions: HSA $ 0.00 $ 50.00(MSA)
$ 0.00 $ 200.00(DSA)
$ 0.00 $ 116.00(M/D)
Taxable Income $ 1,800.00 $ 1,434.00
Federal $ 207.00 $ 147.00
FICA $ 137.70 $ 109.70
State $ 57.98 $ 43.05
Total Tax $ 402.68 $ 299.75
After Taxes $ 1,397.32 $ 1,134.25
In the following example, this employee earns $1,800.00 monthly. The first column shows his pay without pre-tax deductions. The second column shows his pay with the following pre-tax deductions: $50.00 to medical spending account (MSA), $200.00 to the dependent care spending account (DSA), and $116.00 for medical and dental premiums (M/D).
Without With
Flex Flex
Gross Pay $ 1,800.00 $ 1,800.00
Salary Reductions: HSA $ 0.00 $ 50.00(MSA)
$ 0.00 $ 200.00(DSA)
$ 0.00 $ 116.00(M/D)
Taxable Income $ 1,800.00 $ 1,434.00
Federal $ 207.00 $ 147.00
FICA $ 137.70 $ 109.70
State $ 57.98 $ 43.05
Total Tax $ 402.68 $ 299.75
After Taxes $ 1,397.32 $ 1,134.25
Flex Spending Accounts Frequently Asked Questions
- How do I file for reimbursement?
The forms needed can be found on the Human Resources webpage on the Samford website. You can also contact HR to have a form emailed to you. Send the completed form along with proper documentation of the expenses to the address given on the form. - Where do I send my completed form?
You will send the form to the Professional Benefits Group. The address is included on the form. - Can I file for reimbursement at any time or do I have to file as the expense is incurred?
No. You can file for reimbursement anytime during the plan year. - How can I find out my account balance? There are a few ways to find the balance you have remaining in your account. 1) Go online to : www.pbg-ala.com, Click on Flex Status, Enter your SSN in both the id and password fields (after your initial login you can change your password if you wish). This page shows the current plan year, your annual election, your paid-to-date amounts, as well as information about the checks that have been issued to you. You can even update your contact information on this page. 2) Call Professional Benefits Group at 822.8310 3) Look at the bottom of your most recent reimbursement check stub. The remaining balance is listed there.
- What is the plan year?
January 1 to December 31. - What happens to money in my account that is not claimed by the end of the plan year?
If any money is left in the account at the end of the time limit to submit claims, the money is forfeited. - How long do I have to submit claims?
You must submit claims for services rendered during the plan year within 3 months of the close of the plan year. - What is the benefit of participating in the flexible spending account?
Since the deduction is taken pre-tax, you never pay taxes on this money and can possibly lower your tax bracket. - What are examples of the eligible over the counter medications that I can claim for reimbursement? You can be reimbursed for over the counter medications such as pain relievers, antacids, First Aid (rubbing alcohol, bactine, bandages), laxatives, children's medications, sinus and allergy medications, topical anesthetics, cough and cold medicine, pregnancy tests, and anti-fungal medications.
*For more information on the flex spending plans, please view the PowerPoint presentation from the Professional Benefits Group.
