Flexible Spending Accounts (FSA) Benefit
Looking for ways to manage your healthcare dollars while providing value-added benefits for your employees?
Look no further than a Flexible Spending Account (FSA) from The Principal.
With an FSA from The Principal, you can enhance your benefits program and provide employees with a money saving alternative - without dramatically increasing your employee benefit costs. In fact, your tax savings on employee contributions (which reduce taxable pay) will likely offset your plan costs.*
How an FSA Works
When you offer an FSA, the plan reimburses participants for certain health care and dependent care expenses with before-tax dollars. Employees choose to set aside a certain amount of their pay in an FSA account. Then, their FSA account reimburses them for qualifying expenses, such as child or elder care cost and medical deductibles and copays.
Both you and your employees benefit. You pay no Social Security tax (FICA) on employee contributions. Plus, employees' taxable income is reduced by the amount they contribute to their FSA. In other words, employees pay no federal, Social Security or (in most states) state taxes on the FSA dollars used to reimburse their qualifying expenses.
If you are interested in offering your employees an FSA option, please call 800.654.4278 x43580. If you have a Principal FSA and would like to speak with an FSA reimbursement representative, please call 877.372.4730, option 2.
More Information on FSAs
- Debit Card IIAS
- Changes in 2008 (PDF: 64 KB)
- Walgreens and Wal-Mart moving to standard IIAS (PDF: 68 KB)
- Current Merchants where cards will work in 2008 (PDF: 8 KB)
- Special notes regarding Publix (PDF: 68 KB)
- FSA Hot News Flash - 2 1/2 Month Extended Grace Period Allowed
- Groups with Debit Card (PDF: 91 KB)
- Groups without Debit Card (PDF: 89 KB)
- Covered and Excluded Expenses (PDF: 25 KB)
- Frequently Asked Questions (PDF: 49 KB)
- Checklist for Turning in your Flexible Spending Account Claim
- FSA Calculator
- Form 5500 - Who, What, When, Where, and Why
- FSA Reimbursement Form (PDF: 155 KB)
- Limited FSA Reimbursement Form (PDF: 137 KB)
- Limited FSA Covered and Excluded Expenses (PDF: 20 KB)
- FSA Auto-Reimbursement FAQ (PDF: 19 KB)
- Over The Counter Drug List Guideline (PDF: 98 KB)
* Savings are not guaranteed.
Plans may vary on covered items, refer to your SPD to view the detail of your plan design.
