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Medical FSA

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The Medical Flex Spending Account (FSA) enables the employee to pay for expenses allowed under Sections 105 and 213(d) of the Internal Revenue Code which are not covered by the group medical plan and pay less tax at the same time. The Medical FSA allows the employee to be reimbursed for expenses incurred by the employee and the employee's dependents. If the employee actively contributes to an HSA, the employee may not continue those eligible contributions to an HSA if the employee participates in a Medical FSA. 

Visit irs.gov or Allegiance for a full list of qualified medical expenses. 

Annual maximum contribution per employee per Plan Year is $2,550+$500 rollover. (Maximum contribution will change for the 2018 Plan Year to $2,600.) Can be used for:

  • Deductibles, copays, and coinsurance
  • Prescription drug costs
  • Medical, dental and vision non-covered expenses
  • See a complete list of qualified medical expenses at Allegiance
  • $500 rollover not available until after the 120 day run-out period beginning January 1 to claim previous year's expenses.

Other Restrictions:

  • $120/year minimum contribution - Click HERE to learn how this minimum applies to the rollover.
  • $2.26/month fee for one or both types of FSA
  • $1/month fee for debit card

Because it is possible the employee may forfeit amounts to the Plan if the employee does not fully use the contributions that have been made, it is important the employee decide how much to place in their Medical FSA account before the Plan Year begins. The employee must be as certain as possible that the amount the employee contributes to their Medical FSA account will be used entirely. 

During the course of the Plan Year, the employee may submit requests for reimbursement of expenses the employee has incurred. Expenses are considered "incurred" when the service is performed not necessarily when it is paid. For the Medical FSA Account, the employee shall submit claims no later than 120 days after the end of the Plan Year. 

A terminated employee has 120 days from the date of termination to submit claims for medical expenses. 

See the Wrap Plan Document for more details about flexible spending accounts. 

See the medical flex calculators on the Allegiance website www. allegiance.flexadvantage.com for assistance in determining your appropriate contribution amount.

Administered by Allegiance Benefit Plan Management 
(866) 339-4310 
Fax (406) 523-3149 or 
(877) 424-3539

https://www.askallegiance.com/