Flexible Spending Accounts

With an FSA, you elect to have your annual contribution amount deducted from your paycheck in equal installments through the calendar year.  Contributions are made on a pre-tax basis so the amount of your pay that goes into an FSA will not count as taxable income.  FSA dollars can be used during the plan year (calendar year) to pay for qualified expenses and services.

  • A medical FSA allows you to pay for qualifying medical expenses not covered by insurance for yourself or your tax dependents.
  • A dependent care FSA allows you to pay for qualifying daycare expenses.  Your dependent must be under age 13 or a handicapped /elderly adult who is unable to care for himself/herself and who is your tax dependent.  The daycare must be provided so that you (and your spouse, if married) can work.

It is important to plan your FSA election carefully.  Once you’ve made your FSA election for the calendar year, you may not change it unless you have a qualifying event.  You can put up to $2,600 each calendar year into a medical FSA and up to $5,000 per calendar year into a dependent care FSA.  An employee can carryover up to $500 of an unused medical FSA into the following plan year (calendar year).  This carryover provision is only available to an employee who is actively employed on the last day of the plan year and who is still making contributions through the end of the plan year.  The carryover provision does not apply to dependent care FSAs.

Important:  If you don’t have enough expenses in the calendar year to claim the entire amount from your FSA (excluding the $500 amount allowed for a medical FSA carryover), you will forfeit the remaining balance at the end of the calendar year for both medical and dependent care.

How do I receive reimbursement from my Medical and/or Dependent Care FSA account?

Medical FSA Reimbursement:  Each medical FSA participant will receive one debit card with their name on it for their account.  You can use the debit card for claims or you can submit paper claim forms to Group Dynamic.  You have access to your total annual medical election at any time during the year.

IRS rules require that all transactions must be substantiated – even debit card transactions.  Only debit card transactions at providers/merchants who can electronically validate the expense as FSA eligible at the point of sale do “not” require substantiation.  Always save itemized receipts for submission to Group Dynamic.  If substantiation is required, participants will be notified by email or an alert on the Group Dynamic participant portal home page.  Employees may also see if a claim requires substantiation by logging into their online account or mobile app to check the status of a claim.

Automatic Orthodontia Reimbursement Process

Dependent FSA Reimbursement:  Dependent FSA claims are submitted to Group Dynamic using a paper claim form.  You may only submit reimbursement request for amounts that you have already put in your dependent care FSA.  If you meet certain criteria you may be eligible for Group Dynamic’s automatic dependent care reimbursement process. 

Automatic Dependent Care Reimbursement Process

Can I have a Health Savings Account (HSA) and still contribute to a Medical FSA?

If you are enrolled in a HSA-qualified high deductible health plan, you are eligible to make contributions (up to the annual limit of $2,600) to a “Limited Use” FSA.  A limited use FSA can only be used for qualifying dental and vision expenses versus a “Full Use” medical FSA, which can be used for qualifying medical, dental and vision expenses.

Group Dynamic, Inc.
Reimbursement Benefits
411 US Route One
Falmouth, ME  04105
(207) 781-8800 or (800) 626-3539