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Flexible Spending Accounts

The University offers employees two optional flexible spending accounts, which allow participants to use tax-free dollars to pay for qualified medical and dependent care expenses. Employees may enroll in either or both of the plans.

How flexible spending accounts work

A pre-determined amount of money is deducted from the participant's gross pay (before taxes). The dollars are set aside in a special account, from which the participant is reimbursed for known expenses as they occur. The funds are not taxed when earned or when paid as reimbursement to the participant. The participant saves FICA, federal and state income taxes on these expenses.

Important: Unclaimed funds in a flexible spending account after 90 days following the plan year, for services incurred during the plan year, are not refundable to the employee according to IRS provisions. However, as of the 2014 plan year, health care flexible spending account participants may carry over up to $500 of unused funds into the next plan year, with the first carryover from 2014 to 2015. Please note that this carryover provision does not apply to the dependent care account.

The two plans

Health care flexible spending account

This plan can be used to pay for out-of-pocket medical expenses that are not covered by health insurance, such as (but not limited to) deductibles and co-pays for medical, prescription, orthodontic, and dental services, as well as medical expenses beyond the limits of insurance coverage. Employees may contribute up to $2,500 per year to the medical reimbursement flexible spending account.

Dependent care flexible spending account

This plan can be used to pay for expenses paid to an eligible care provider of your eligible dependents during your working hours. Eligible dependents are children under age 13 (whom you claim as exemptions for federal tax purposes) and your disabled spouse, parent, or older child whom you claim as a dependent for federal tax purposes. Employees may contribute up to $5,000 per year to the dependent care flexible spending account.

Enrollment

Employees may enroll in one or both of the flexible spending plans upon hire, during open enrollment (usually during fall semester), or when a qualified change in status occurs (marriage, birth, divorce, etc.).

Forms

The BASIC Flex enrollment booklet, direct deposit form and claim form are available via Forms.

Need more information?

Please contact Human Resources, or contact the plan administrator directly:

BASIC
9246 Portage Industrial Drive, Portage, MI 49024
Phone: (800) 444-1922 or (269) 327-1922
Fax: (800) 391-6562
Email: flex@basiconline.com