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2012 Transportation Plan Monthly Limits Beginning January 2012, the combined monthly limit in a commuter highway vehicle and any transit pass is $125. While the monthly limit for qualified parking is $240. |
mySourceCard (Debit Card) Usage at Plan Year Beginning and Plan Year End
When a plan year ends and a new one begins, we are frequently asked questions regarding debit card use during this period for Flexible Spending Accounts and Transportation Accounts. Here is a brief explanation as to how things work: Debit cards are loaded with “purse” values. These purse values indicate the available account balance in your flexible spending account or transit account. Note that some plans also have a “grace” period allowing eligible expenses to continue to be incurred for up to an additional two and a half months after a plan year ends, and still apply to the previous year’s account balance.
So, what happens at year end, especially presuming that you have funded your accounts again for next year?
FSA Debit Cards – No Grace Period
- All expenses incurred in 2012 will go toward your 2012 election.
- If you pay for an expense with your debit card in 2012 for a service that was incurred 2011, the expense will ultimately be taken from your 2011 account balance. In this scenario, if you no longer have a balance in your 2011 account, you will need to payback your employer, as the expense would be deemed ineligible.
FSA Debit Cards – Grace Period
- You should first confirm the length of your employer’s grace period, as your employer could adopt up to a 2 ½ month extension.
- Any expenses incurred during the adopted grace period will first be deducted from any remaining balance in the 2011 plan year. Any remaining portion will automatically be taken from your 2012 election.
Transit Account Debit Cards
- You should make sure your employer allows the use of the debit card with the transportation account.
- While the Transit Account has a plan year, unused contributions carry over from month to month and only expire if you leave the company. This means that as long as you do not exceed the allowable monthly reimbursement amount, you can use accrued contributions from previous plan years at any time during the current plan year.
If you are confused by how these plan balances transition, you may, of course, call one of our representatives to review your personal situation.
Ten Health Care Expenses that Might Help You Avoid Forfeiture
As the year comes to a close, individuals with Health Care Flexible Spending Accounts (FSAs) should check their account balances and make plans to spend any remaining funds by the end of the year so that funds are not forfeited. Remember most plans require that you spend your available balance by year end. (Some plans have a Grace Period whereby you can continue to incur eligible expenses for up to an additional 2.5 months after the plan year ended. Check your SPD or other materials for that.) Consider the following to avoid the "use-it-or-lose-it" pitfall:
1) Consider eligible expenses for your dependents. Many participants overlook dependents, especially if they are only carrying single coverage with their Employer's group health plan. Even though your spouse, for example, is covering your dependents on his/her group health plan, dependents are still eligible to incur eligible expenses.
2) Contact your pharmacy and request print-outs of prescriptions purchased during the plan year. Review it to be sure that all items have been submitted for reimbursement. more...
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