FLEXIBLE SPENDING ACCOUNTS (FSA)
Flexible Spending Accounts allow you to put aside a portion of your pay to reimburse yourself on a pre-tax basis for healthcare and/or dependent/elder care expenses. If an employee wishes to take advantage of a FSA each year, they must renew the account during the open enrollment period.
Employees can enroll in both Flexible Spending Accounts: health and/or dependent child/elder care. Dollars deposited in these accounts are kept separate and cannot be transferred from one account to the other. Both accounts are administered by HealthEquity/Wageworks.
This account can be used to pay eligible medical, vision, and dental expenses including deductibles and co-payments not covered under any other plan. Additional highlights of the plan are listed below:
- You may use your FSA money on yourself or your federally eligible dependents, regardless if you or they are participating in any other University benefit plan.
- Important deadline: There is a “use it or lose it” rule, funds must be used during the applicable plan year timeframe or they are forfeited.
- Under government regulations, unused dollars after the deadlines will be forfeited.
- Maximum contribution amount for 2023: $3,050.00
- For a list of eligible expenses, please visit www.wageworks.com
- Minimum per pay deposit: $1.00, Maximum annual Deposit: $3,050.00
- Once an FSA election has been made it cannot be changed. The employee is committed to that decision for the plan year. The only exception is when the employee has a qualifying Change in Status.
This account is for the purpose of paying for eligible dependent/elder care expenses (such as child or parental care) that enables you to work.
- Pay for dependent care expenses for child(ren) under age 13 or an elderly dependent so that you (and your spouse, if you are married) can work, look for work or go to school full time.
- Important deadline: There is a “use it or lose it” rule, therefore funds not used during the current tax year through December 31st are forfeited.
- Under government regulations, unused dollars after the deadlines will be forfeited
- Maximum contribution amount for 2023: $5,000. If you are married and you and your spouse both participate in a Dependent Care FSA, you are limited to a combined deposit of $5,000, if you file a joint tax return, or deposits of $2,500 each, if you file separately.
Dependent care expenses are eligible for reimbursement if they meet the following criteria:
For a full list of eligible expenses, please visit www.wageworks.com
- The annual amount submitted for reimbursement does not exceed the lesser of your income or your spouse’s income
- The expenses are necessary to enable you to work
- Your dependent is under age 13 or is physically or mentally incapable of caring for him/herself
- Your dependent is eligible to be claimed as a dependent on your Federal Income Tax Return
- Your dependent resides in your home for at least eight(8) hours per day
- Your payments are not made to a person you claim as a dependent
- If the services are provided by a dependent care center that provides care for more than six individuals (other than a resident of the facility), the center must comply with all state and local laws
NOTE: When filing Federal Income Tax Return you will be required to supply the name, address and taxpayer identification number of the dependent care provider.