MMC Benefits Handbook
How the Plan Works
On May 4, 2020, the US Department of Labor and US Department of the Treasury issued regulations regarding employee benefit plans in response to the COVID-19 National Emergency. The regulations suspend various plan administration deadlines and give employees/participants more time to file claims for benefits (including claims for reimbursement, such as run out period claims, under a Limited Purpose Health Care Flexible Spending Account) or appeal denied claims. If you have questions about how this regulatory guidance impacts your Limited Purpose Health Care Flexible Spending Account reimbursement claims, please contact Trion at +1 866 324 4087, any business day, 8:30 am to 5:30 pm, ET.
In 2021, the Company made a temporary change to the design of the Limited Purpose Health Care Flexible Spending Account as permitted by temporary changes in applicable federal law related to the Covid-19 pandemic. As a result of these changes, the $550 carryover maximum does not apply for carryovers from the 2020 plan year into 2021, or the 2021 plan year into 2022. Nonetheless, you should carefully estimate your expenses before deciding on an amount to contribute. For more information about the special changes to the Limited Purpose Health Care Flexible Spending Account, including examples of rollovers of unused balances as of December 31, 2021, see the Things You Need to Know About the 2021 and 2022 FSAs.
You may contribute to the Plan through payroll deductions on a before-tax basis. When you have reimbursable health care expenses, you can receive your money back tax-free, up to the amount you elect to contribute for the year. You are reimbursed for eligible expenses that are not covered by another plan.
The Limited Purpose Health Care Flexible Spending Account can only reimburse eligible dental, vision and preventive medical care expenses that are not covered by another plan. Other qualified medical expenses are only reimbursable if they are post-deductible qualified medical expenses.
You contribute to the Limited Purpose Health Care Flexible Spending Account over a 12-month plan year, from January 1 to December 31 (or fewer months, if you start or stop participating during the plan year as the result of a qualified family status change). You may use your Limited Purpose Health Care Flexible Spending Account to pay for eligible expenses incurred during the plan year.
You have until March 31 of the following plan year to submit for reimbursement eligible expenses you incurred during the plan year.
The Plan generally allows a maximum of $550 of your Limited Purpose Health Care Flexible Spending Account unused balance to be carried over into the next plan year to be used for eligible expenses. In accordance with IRS rules, you will forfeit any amount that exceeds the maximum $550 carryover amount that is not used to pay eligible expenses incurred by December 31 (and submitted by March 31).
Example: You can use your 2022 Limited Purpose Health Care Flexible Spending Account to be reimbursed for eligible expenses incurred between January 1 and December 31, 2022 (the plan year). You must submit claims for those expenses no later than March 31, 2023. If you have a $600 balance in your Limited Purpose Health Care Flexible Spending Account on December 31, 2022, $550 of the $600 balance will be carried over for you to use in 2023. The remaining $50 of the $600 balance will be forfeited unless you submit by March 31, 2023 claims for eligible expenses incurred in 2022 to use the $50 balance.
For examples of IRC Section 213 qualified medical expenses, see IRS Publication 502, which is available at www.irs.gov or by calling the IRS at +1 800 829 3676. Note that certain items listed in Publication 502 may not qualify for Limited Purpose Health Care Flexible Spending Account reimbursement, such as premiums for dental or vision insurance. In addition, Publication 502 does not specifically address all of the requirements of Limited Purpose Health Care Flexible Spending Accounts, including Post-Deductible Qualified Medical Expenses (see "Examples of Eligible Expenses" and "Examples of Ineligible Expenses" for more information). You may also contact the Claims Administrator for information about reimbursable qualified medical expenses.