Flexible Spending Accounts (FSA)
The University provides an opportunity for you to receive benefits in the form of reimbursements for qualifying medical care expenses such as health plan deductibles, co-payments, and other medical, vision, and dental expenses that are not covered by your health plan with pre-tax payroll salary dollars.
Flexible Spending Accounts Overview
What is an FSA?
An FSA is a flexible spending account, which is authorized by the IRS and available through your employer. This type of account allows you to set aside money for non-reimbursed healthcare and/or dependent day care expenses on a pre-tax basis. As you incur health care and/or dependent day care expenses throughout the year, you submit a claim for those expenses, and you are reimbursed with tax-free dollars from your spending account. Click here to learn more about Flexible Spending Accounts.
A Healthcare Flexible Spending Account reimburses you for out-of-pocket medical, dental, vision, hearing, and pharmaceutical expenses such as deductibles, co-pays, co-insurance, eyeglasses, contacts, eye care solutions, and even laser-vision correction. The maximum you can contribute each year is $2,550.
CCAP participants can use a Limited Purpose Flexible Spending Account for expenses other than medical. If you will incur dental, vision, or over-the-counter (OTC) expenses, this option gives you a tax-free way to pay for those expenses, while conserving your HSA funds for later use. Click here to learn more about Limited Purpose FSA's.
The Dependent Care Flexible Spending Account reimburses you for dependent day care expenses incurred that enable you and your spouse to work. These dependent day care expenses include day care, before-and-after school programs, nursery school or preschool, summer day camp, and even adult day care. The maximum amount you can contribute is $5,000.
When you participate in any of these accounts, you reduce your taxable income so you pay less in income taxes.
What happens to the funds left in my account at the end of the plan year?
For the Health and Limited Purpose Flexible Spending Accounts, up to $500 of unused funds will carryover into the next plan year. Any amount over $500 would be forfeited. The $500 carry over does not apply to the Dependent Care FSA, so be sure to use all money contributed to that fund by the end of the year. Claims for reimbursement can be submitted through March of the following plan year at www.healthhub.com.
Want to learn more? Go to www.healthhub.com. The site has many valuable tools to help you effectively use this tax saving benefit. Use the FSA calculators to help determine how much money to put in your FSA account. Or, if you’re already enrolled, log in to:
- Check your account balance
- Sign up for direct deposit or change your bank account information
- Order additional PayFlex cards
- View a list of all eligible expense items
- Fill out an Express Claim form to get reimbursed for an expense
You can also contact Customer Service at (800) 284-4885, 7:00 a.m. – 7:00 p.m. (CT), Monday – Friday, and Saturday, 9:00am - 2:00pm (CT)
For information regarding all of the great products offered by PayFlex, i.e. FSA, FSA-Dependent Care, and HSA accounts, please click here to view some quick informational videos.
Remember, these accounts should be used only for predictable expenses; under Internal Revenue Code (IRC) regulations, unused account balances must be forfeited.