Diversified Benefit Services (DBS) offers a comprehensive suite of solutions designed to help organizations optimize their employee benefits programs. One of the key offerings, Flexible Spending Accounts (FSAs), allows employees to set aside pre-tax dollars to cover eligible healthcare and dependent care expenses. This article provides a comprehensive overview of DBS’s diversified benefit services, specifically focusing on FSAs.
Understanding Flexible Spending Accounts (FSAs)
FSAs empower employees to reduce their taxable income by allocating funds for qualified expenses. Two primary types of FSAs are available: Healthcare FSA and Dependent Care FSA. A crucial aspect of FSAs is the “use-it-or-lose-it” rule, requiring employees to utilize the funds within the plan year (January 1st to December 31st) or forfeit the remaining balance. However, DBS offers a grace period extending until March 15th of the following year to incur eligible expenses.
Healthcare FSA: Managing Medical Costs
The Healthcare FSA allows contributions up to an annual maximum of $2,850, made in increments of $100. Participants receive a pre-loaded debit card for convenient access to their funds throughout the year. This card can be used directly at the point of service, eliminating the need for reimbursement claims. Alternatively, employees can submit claims manually or online through the DBS website.
Eligible expenses encompass a wide range of healthcare costs, including:
- Health, dental, and vision insurance deductibles
- Copays and coinsurance for medications
- Dental and vision care (exams, cleanings, fillings, orthodontia, frames, lenses)
- Over-the-counter medications (allergy, pain relief, cold/flu)
Dependent Care FSA: Supporting Caregiving Needs
The Dependent Care FSA helps employees manage expenses associated with caring for eligible dependents, such as children under 12 or elderly family members. The maximum contribution limit is $5,000 for married couples filing jointly or $2,500 for those married filing separately. Both spouses must be employed to qualify for this benefit.
Reimbursement for dependent care expenses requires submitting manual claims directly to DBS. Eligible expenses include:
- Daycare and preschool costs (excluding food and clothing unless inseparable from the total cost)
- Before and after-school care
- Babysitting and licensed daycare center fees
- In-home housekeeping services that include daycare
- Elder care for dependents claimed on tax returns
FSA Enrollment and Management
Enrollment in FSAs occurs annually during open enrollment in October, with coverage effective January 1st. Changes to FSA elections can be made mid-year only if a qualifying life event occurs, such as marriage, birth, or adoption. Employees leaving LSU employment can continue to submit claims for expenses incurred before their last day of employment, adhering to specific deadlines. DBS provides various resources, including online claim filing, a mobile app, and direct deposit options, to streamline the FSA management process. Detailed information and forms are available on the DBS website.
Conclusion: Leveraging Diversified Benefit Services with DBS
Diversified benefit services, particularly FSAs offered by DBS, provide significant financial advantages for employees. By strategically utilizing these programs, individuals can reduce their tax burden and effectively manage healthcare and dependent care costs. Understanding the nuances of each FSA and adhering to eligibility requirements and deadlines is crucial for maximizing these benefits. Visit the DBS website for comprehensive information and resources.
