A health care Flexible Spending Account (FSA) is designed to help you pay out-of-pocket health care expenses.

The advantage of using a health care FSA is your contributions are made on a pre-tax basis. This means you're using tax free money and you're lowering your taxable income.

A health care FSA can be used to pay for most medical, dental, prescription, hearing and vision expenses not covered by other health care plans for you, your spouse and your eligible dependents.

Maximum Contribution Amounts
You can elect to contribute up to $5,000 into a health care FSA. When deciding the amount you wish to contribute to this account, take into consideration:

• Known or fixed health care costs that are not covered by medical, dental or vision insurance.
• Prescription co-payments you anticipate during the year.
• What you might spend out-of-pocket for health care annually including over-the-counter drugs.
• Deductibles required under the Medical/Dental Option you select.

Be sure to check the health care FSA Estimator located in the Medical Plan Decision Toolkit.

"Use it or lose it" - Tax advantage accounts have certain tax advantages, therefore the IRS regulates them. By law, any funds not used for services during the year will be lost. In other words, you need to use the money in your account or you'll lose it. See the www.irs.gov Web site for the complete list of qualified health care expenses, Publication 502.

Changing your health care FSA contribution amount mid-year can only occur if you experience a qualifying status change. Contact Farm Credit Foundations for more information.

Amount Available for Reimbursement
Your total annual health care contributions are available to be reimbursed at any time during the year. For example, if your claims exceed the balance in your health care spending account, you will be reimbursed up to the total amount you have elected to deposit for the year, regardless of the amount you have contributed at the time you submit your claim.

Accessing Your Health Care FSA Funds

Debit Card
When you enroll in a health care FSA you will receive a Visa debit card. You can use your debit card for expenses at most pharmacies and physician offices.

Online Banking
Bank of America offers online banking features for FSA participants.
Preview Bank of America's Web site and reimbursement flash video.

Claim Filing Deadline

• Year-End
  You have until March 31st to file claims for expenses incurred during the prior plan year. Any money left in the account after March 31st will be forfeited.
• Mid-Year Termination of Participation
  If you retire, leave the organization or cancel your FSA account mid-ear, you have 90 days to submit your claims to Bank of America for reimbursement. Any money left in the account will be forfeited.