Flexible Spending Account
Your paycheck goes further when you set aside pretax dollars in a health care flexible spending account (FSA) or a dependent care FSA. That’s because you don’t pay federal or state income taxes on your contributions. HSA Bank is the administrator for both FSAs beginning Jan. 1, 2023. When you enroll in a health care and/or dependent care FSA for 2023, you will receive a debit card from HSA Bank. An advantage of an FSA debit card is that it allows you to access FSA funds directly when paying for eligible expenses without paying from personal funds and submitting a claim for reimbursement. Your debit card will be automatically activated the first time you use it. You may also submit claims through the HSA Bank member website hsabank.com or the HSA Bank mobile app.
For more information, please contact HSA Bank directly at (800) 357-6246 24 hours a day, 7 days a week, or visit: https://www.hsabank.com/hsabank/homepage.
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.
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, coinsurance and co-pays for medical, prescription drug, vision, orthodontic and dental services, as well as medical expenses beyond the limits of insurance coverage.
Employees may contribute up to $3,050 per year beginning in 2023 to the medical reimbursement flexible spending account. Claims must be submitted by the end of the third month (March 31) following the end of the plan year. Health care flexible spending account participants may carry over up to $570 of unused funds into the next plan year. Amounts in excess of $570 will be forfeited per IRS regulations. Carry over funds are not available for reimbursing claims until the 15th of the month following the run-out period (April 15). Claims may be submitted for reimbursement as expenses are incurred..
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 calendar year if married and filing taxes jointly ($2,500 if married and filing separately or if single) to the dependent care flexible spending account. Claims must be submitted by the end of the third month (March 31) following the end of the plan year. Any unclaimed funds in a dependent care flexible spending account after that will not be refundable to the employee according to IRS provisions. A dependent care flexible spending account is considered a "use-it or lose-it" account.
Employees may make changes to the Dependent Care FSA pledge amount when dependent care arrangements change by submitting the FSA Enrollment form and indicating Mid-year Election or Change with the new annual pledge amount. When employees end University employment, they have 90 days to file claims for service dates up to the last day of employment.
Employees may enroll in one or both of the flexible spending plans upon hire, during open enrollment (usually during fall semester), or within 31 days after a qualified change in status occurs (marriage, birth, divorce, etc.).
The HSA Bank enrollment form is available via FSA Enrollment form.
Need more information?
Please contact Human Resources, or contact the plan administrator directly: