Flexible Spending Accounts
Additional Rules, Procedures and Eligibility Requirements

Client Services
IRS Restrictions
Limits on Retirement Plan Contributions
Changing Your Elections
Terminations and Leaves of Absence

Client Services
If you have any questions about the Flexible Spending Program, or want to check the status of a claim, contact ProBusiness Administrative Services at 800-269-0020, or follow the contact us link for alternative contact methods.

All reimbursement requests must be submitted by fax or mail to:

ProBusiness Administrative Services
PO Box 3001
Bothell, WA 98041-3001
FAX: 800-269-5231 (or 425-415-4790 in the Seattle area)

If you submit your claim via fax, you do not need to mail the hard copy. You can download claim forms to print on your own printer. A claim form can also be found in your FSA print materials, or you may obtain additional claim forms from your Human Resources Department.

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IRS Restrictions
In return for the significant tax advantages the spending accounts offer, the IRS imposes some rules and restrictions on how you can use these accounts:

Expenses must be incurred during the plan year. You can only be reimbursed for expenses that are incurred during the plan year. However, you have a "grace period" after the end of the plan year to collect receipts and documentation for any remaining claims you wish to submit for reimbursement. Refer to your Program Highlights for specifics on your company's grace period. Note: "incurred" means an expense is incurred when the participant is provided with the medical care that gives rise to the medical expenses, or provided with the dependent care services and not when the participant is formally billed or charged for, or pays for the medical care, or dependent care services.

Use it or lose it. It's important to carefully estimate your annual out-of-pocket expenses before enrolling in a spending account. Set aside only as much as you expect to spend during the plan year, because you cannot carry balances forward or receive a refund of unused amounts. Any money left in your account beyond the grace period must be forfeited, in accordance with IRS rules.

Account balances are not transferable. You cannot use money contributed to a health care spending account to pay for dependent care expenses - or vice versa.

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Limits on Retirement Plan Contributions
There are IRS limits on how much you can set aside on a before-tax basis from all types of benefit programs, including 401(k) plans. Generally, very few employees exceed the limit. For more information, please contact your Human Resources Department.

Spending account contributions may affect Social Security benefits. Because you and your employer do not pay Social Security taxes on the money you contribute to spending accounts, your future Social Security benefits may be reduced. However, the tax savings gained through participation in a spending account usually outweigh any loss in benefits. For more information, contact your tax advisor.

Discrimination testing may affect your contributions. Non-discrimination testing is conducted to ensure that the plan does not favor highly compensated employees. If your company fails discrimination testing, highly compensated employees may be asked to limit or stop their contributions to the Flexible Spending Program. For more information, contact your Human Resources Department.

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Changing Your Elections
The election you make when you enroll is binding for the entire plan year. You may only change your election -- e.g. begin, increase, decrease or stop your contributions -- during open enrollment, or when you have one of the "status changes" described in the following FAQ documents:

Health Care Spending Account FAQ
Dependent Care Spending Account FAQ

You have 30 days from the date of your status change to make changes to your spending account election(s). The change you make must be consistent with the status change. For example, if you acquire a new dependent through adoption, you would be able to begin or increase contributions to a spending account, but you would not be able to decrease or stop contributions. Please contact your Human Resources Department, if you have questions about status changes.

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Terminations and Leaves of Absence
If you terminate employment or take a leave of absence, please contact your Human Resources Department or ProBusiness Administrative Services to find out how your spending account participation is affected.

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