The Truth About Flexible
(Common Myths Dispelled)
Taking advantage of MyFlex doesn’t change
what you do at tax time. You actually get a “tax refund” on
every paycheck after joining the MyFlex plan, because you pay no tax on
the money you set aside.
decide how much money to put into the plan and where and when you spend
the money in your account. This is a great way to budget. A regular amount
is deducted from your paycheck, but the entire annual election is always
available for you to spend on healthcare expenses from day one of the
plan year. (Note: Only amounts contributed to date are available for dependent
care expenses.) You may also be allowed to incur expenses up to 2½
months after the plan year end to reimburse those expenses if your employer
elected this option.
Actually, there is very little paperwork. Some of your healthcare expenses
such as co-pays and deductibles may be automatically reimbursed without
filling out a claim form. For other expenses, you can print a claim form
from the website and submit it along with your detailed receipts. If your
employer has chosen the debit card option, you may not need to turn in
a receipt for co-payments or prescriptions. (However, the IRS requires
you to save your receipt.)
security benefits are based on your lifetime earnings history. Your social
security benefits may be slightly reduced by participating in the plan.
However, tax advisors will tell you that the tax savings you earn today
far outweigh any social security benefits reductions you might incur in
Not any more. With the new IRS Revenue
Ruling, over-the-counter drugs (cough syrups, pain relievers, allergy
medicine, etc.) may be reimbursed through your plan.
Everyone has medical expenses, not just
families. And now, over-the-counter drugs may be reimbursed.
You may incur more medical expenses than your spouse’s
plan allows you to elect. There is no IRS limit on the amount of medical
expenses that can be reimbursed per household (however, your employer
may limit the dollar amount), so join your employer’s plan to save
taxes on additional medical expenses.
Did you know you
could get money out of the plan before you put money in? By joining the
plan, you can have the plan pay your healthcare expenses in full at the
time of service even before you make your contributions.