Frequently Asked Questions
Important Questions and Answers about the Flexsave Plan

Q:  What is the Flexsave Plan?
A:  Flexsave Plan is a Private Health and Welfare Trust.  It is a CRA approved plan that allows sole proprietors and partners with arms-length employees as well as Corporation to tax-deduct their health care and dental expenses in a tax-effective and cost-efficient manner.  Dependants and employees are included.  Flexsave Plan can be used in combination with a traditional group insurance plan.

Q:  What is the maximum annual deduction allowed?
A:  For Corporations, there are no annual limits.  
For unincorporated individuals and their families, there is a limit of $1,500 per adult per year and $750 per child per year.  For example, two adults and two children would be entitled to a maximum of $4,500 per year.  
Note:  No limits apply where the number of arms length employees receiving coverage represents at least one-half the total number of employees in the business.

Q:  Does it matter who spends the money from the household maximum?
A:  No, it doesn’t matter.  Anyone in the family can spend up to the total allowable amount for the entire family.  For example, the entire $4,500 from the previous example could be applied to the parent's laser eye surgery or the children's orthodontic treatments.

Q:  What is the In-Province Emergency and Travel Insurance?
A:   For sole proprietors and partners with arms-length employees, CRA requires an insurance component.  In-Province Emergency Medical covers four areas of services:  prescription drugs, ambulance, private nursing, semi-private hospital room and the services of licensed practitioners.  For injury or sickness, this Emergency Medical covers up to a maximum of $100,000 per year.   
Out-of-Country Travel Medical covers emergency treatments outside of your own province, up to a maximum of $1,000,000.  
For Corporations, this Insurance is optional.

Q:  What is the cost for the Trust?
A:  There is a one-time set-up fee of $250.  The administration fee is 10% on claims.  For example, if you spend $1,000 on health care expenses plus 10% administration; this equals $1,100 that is fully tax deductible.

Q:  What happens to the money in the plan?
A:  Your deposits are made into an established trust account and are completely tax deductible in the year of contribution.  Your money is withdrawn tax-free provided it is used for eligible health care and dental expenses.  Any unused contributions are carried forward and remain in the plan for future use.


Frequently Asked Questions
Re:  Administration

Q:  Who administers Flexsave?
A:  HUB International (HBG-T) is one of the largest financial service providers in Canada with over one hundred offices.  They offer a wide variety of innovative products & services to Insurance Brokers.


Q:  Why use an administrator?
A:  Revenue Canada insists upon a third Party Trustee and Administrator to adjudicate for accuracy and compliance.


Q:  How is Flexsave administered?
A:  Claims can be paid in one of two ways.  You pay the health and dental expenses.  Then, submit the claim form with payment from your business account to HUB Financial for reimbursement to your personal account.  The second method is to prepay your Flexsave Plan, with monthly deposits or a lump sum amount, then submit your claim for reimbursement.  If you choose, reimbursement of claims is paid electronically, directly into your personal bank account.


Q:  Can I deduct expenses already paid this year or last year?
A:  Yes, we may be able to back-date your Trust so that you can submit past receipts to make them tax deductible.  
Please confirm your situation with Lisa Jaffary.


Q:  How do I keep track of all my expenses?
A:  HUB Financial will do this for you.  They send you statements detailing all money received and all claims paid.  At year-end, you will have comprehensive statements to take to your accountant for income tax filing purposes.

Please contact Lisa for a Flexsave Plan Information Package