Flexible Spending Accounts

FSA System Update-Sept 2020

BASIC, the FSA administrator, implemented MyCash, an individual cash account that securely holds FSA reimbursement funds until participants either spend or transfer them.  After a claim is submitted and processed, reimbursement funds are loaded to the BASIC Card which functions similarly to a recurring gift card.  The website experience and mobile phone app were also upgraded.

Review the MyCash Account flyer for information about MyCash Account management and the BASIC card.

Review BASIC offers multiple easy ways to request a reimbursement flyer for information about submitting claims.

BASIC mailed the BASIC card to all FSA participants the week of Sept 28, 2020.  The flyer, ONE Card | One Experience, inserted in the package does not pertain to WMU FSA accounts.  Please review the email explanation sent by BASIC to FSA participants.

FSA participants may choose for reimbursements to be direct deposited to a financial institution account instead of loaded to the BASIC Card.  Please follow these instructions to change the default account setup.

For more information, please contact BASIC directly at 1-800-372-3539 or visit: basiconline.com

To learn more and to access useful how-to flyers, guides, and frequently asked questions and answers, please visit: 

https://www.basiconline.com/hq/employee/basic_cda/

Special 2020 Rules due to COVID-19

Due to the COVID-19 pandemic and the issuance of IRS Notice 2020-29, you are now permitted to make up to two (2) mid-year election changes to your Health Care Flexible Spending Account (FSA).  These changes include decreasing or increasing your contribution on a prospective basis only, as well as starting a new FSA.  For WMU participants this change was effective July 20, 2020 and will be available until December 31, 2020.  Please submit the FSA Enrollment form and indicate Mid-year Election or Change with the new annual pledge amount.  If you have questions, please contact Human Resources or BASIC at flex@basiconline.com or (800) 444-1922.

Employees whose University employment ends have 90 days to file claims for service dates up to the last day of employment.  Please use the BASIC Flex Claim form.

Western Michigan University offers employees two optional flexible spending accounts, which allow participants to use tax-free dollars to pay for qualified medical care 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.

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 $2,700 per year beginning in 2020 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 $550 of unused funds into the next plan year. Amounts in excess of $550 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.   Please use the BASIC Flex Claim form.

Enrollment

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.).

Forms

The BASIC Flex enrollment guide, enrollment form, direct deposit form and claim form are available via Forms: Benefit Enrollment and Changes.

Need more information?

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

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