Flex Spending

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Flexible Spending Accounts

The City of Garden Grove's Flexible Spending Accounts are now being processed by a Third Party Administrator, The Advantage Group (TAG), effective January 1, 2022.

All full-time employees are eligible to participate in the Flexible Spending Account (FSA) if they enroll within the program eligibility guidelines. This plan allows employees to reduce their cash compensation on a pre-tax basis and establish reimbursement accounts for out-of-pocket expenditures for child care and medical care expenses. Eligible expenses are then reimbursed on a non-taxed basis after they are incurred and paid by the employee. Federal law stipulates the following restrictions regarding the use of this program:

  • Elections are made once a year and are irrevocable during the year except for certain changes in the employee's family status.
  • The two types of accounts cannot be commingled.
  • Any amounts not claimed during the plan year (January 1 through March 15 of the following calendar year) are forfeited by the employee.
  • Child care contributions are limited to $5,000 annually or $2,500 if married and filing a separate tax return (as determined by the IRS).
  • Health care contributions are limited to $3,200 annually (as determined by the IRS). New limits are typically announced by the IRS after the Open Enrollment window closes so any employees who request the maximum for health or dependent care accounts will be given the option at that time to increase their contributions to the new limit, if applicable.

Reimbursement from Accounts

  • A completed Reimbursement Request Claim Form must be submitted to TAG with all receipts attached.
  • Funds designated in the Health Care account are available January 1 of that plan year. (Example - If an employee designates $260 [$10 bi-weekly deduction from pay check] into the Health Care account and incurs expenses for $260 on January 1, he/she may use their FSA card for the full amount before the deductions have been made. The bi-weekly deduction will continue for the remainder of the calendar year.)
  • Funds designated in the Child Dependent Care account are reimbursed only as money is deposited into the account. (Example - If an employee designates $1,300 [$50 bi-weekly deduction from pay check] into the Child Care account and submits receipts for $300, he/she will be reimbursed $50 per pay period until the balance of the receipt is zero.)
  • No reimbursements will be issued for less than $50 except to close an account.

Common Eligible Health FSA Expenses

  • COVID-19 related expenses including tests, masks, sanitizer
  • Deductibles
  • Co-pays for prescriptions (Rx)
  • Co-pays for doctor visits
  • Coinsurance
  • Glasses and contacts as well as saline solution for contacts
  • Hearing exams
  • Orthodontia payments to the orthodontist office
  • Payments for chiropractic services treating a medical condition
  • CPAP machines & related supplies
  • Laboratory or x-ray fees
  • Bandages
  • Menstrual Products
  • Over-the-counter medications

Common Ineligible Health FSA Expenses

  • Premiums for medical, dental, vision or any other benefit plan
  • Cosmetic procedures
  • Toiletries
  • Diapers
  • Teeth whitening, toothbrushes or mouthwash
  • Vitamins and supplements
  • Care Credit payments or any other credit card payment
  • Gym memberships
  • Marriage or family counseling

TAG Online Account Setup

New Enrollee Packet - TAG New Enrollee Packet
Online Account Services - TAG Online Account Setup Instructions

All active participants have access to their online account features at www.enrollwithtag.com. Your online account provides fast and easy access to all of your accounts activities. Users can view up-to-date account balance information, pending claims status, claims history, and submit for claims reimbursement from your personal account page.

Process for Submitting a Request

  1. Follow the instructions outlined in the TAG Submitting Claims for Reimbursement Form
    Note: The actual request form can be found in the TAG New Enrollee Packet
  2. Attach receipts for your eligible expenditures
  3. Submit your reimbursement request to The Advantage Group via the online portal
  4. Verify that you received your reimbursement as "nontaxable income" on your paystub.

Under Internal Revenue Service (IRS) rules, some health care services and products are only eligible for reimbursement from your FSA when your doctor or other licensed health care provider certifies that they are medically necessary. Your provider must indicate your (or your dependent’s) specific diagnosis, the specific treatment needed, the length of treatment, and how this treatment will alleviate your medical condition.
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Should you have any questions regarding your flexible spending account(s) please contact The Advantage Group at (877) 506-1660 or via email at support@enrollwithtag.com.