Flexible Spending Accounts


Participation


Participating in a flexible spending account (FSA), such as the Health Care FSA and the Dependent Care FSA, is an easy way to set aside money for eligible anticipated out-of-pocket health care expenses and dependent care expenses. You can choose to enroll in one or both accounts.

Through an FSA, you are reimbursed for certain eligible expenses with pre-tax dollars that you set aside upfront—money that comes out of your paycheck before Social Security, federal and most state and local taxes are deducted. Because you do not pay taxes on your FSA contributions, the amount of money you would have paid for taxes is available to you for other purposes. Each year, you specify how much of your salary you want to have deducted from your paycheck and deposited into your FSA account to cover eligible expenses.

To file a claim for an eligible expense, fill out a claim form and fax or mail the form and receipts to ASI. The money in your account, which has never been taxed, is then used to reimburse you for those expenses. Reimbursement of FSA claims is handled by ASI and can be paid by check or direct deposit into your bank account.

Standard Health Care FSA for Plan A or Plan B Members

With Plan A or Plan B and the dental options you choose, if you receive care, you will pay some expenses out of your own pocket. You can use your Health Care FSA to reimburse yourself for certain expenses not covered by your health insurance. Annually, the minimum amount you can contribute for the year is $192 and the maximum amount you can contribute is $5,000. See the table below for paycheck deduction amounts.

Here are a few examples of the types of expenses that are considered eligible for reimbursement under your Health Care FSA:

  • Medical and dental deductibles
  • Medical, prescription drug and dental coinsurance
  • Medical, prescription drug, dental and vision copayments
  • Over-the-counter drugs, such as aspirin, cold medicines, antacids and cough supplements - with the required prescription
  • Contact lens solution or cleaners
  • Orthodontic treatment

Limited Purpose Health Care FSA - Available for Plan C with Health Savings Account Members

The minimum and maximum range amounts to deposit per semi-monthly paycheck are:

Health Care Flexible Spending Account
Minimum
Maximum
24 paycheck deductions
$8.00
$208.33
16 paycheck deductions (at regents)
$12.00
$312.50
     
Dependent Care Flexible Spending Account
Minimum
Maximum
24 paycheck deductions
$16.00
$208.33*
16 paycheck deductions (at regents)
$24.00
$312.50*

*If you are married and filing taxes separately, your maximum is $2,500.

Dependent Care FSA

With the Dependent Care FSA, you can also set aside pre-tax dollars to pay for work-related child care or adult care expenses. If you’re married, you can use the account if you need dependent care because your spouse works, is a full-time student or is disabled. Annually, the minimum amount you can contribute for the year is $384 and the maximum amount you can contribute is $5,000.

Here are a few examples of the types of expenses that are considered eligible for reimbursement under the Dependent Care FSA:

  • Payments to a private babysitter
  • Payments to a day care center
  • Payments for summer day camp (if it allows you to work)
  • Bills for adult dependent day care.

To receive reimbursement, you must submit your provider’s Social Security Number or Employer Identification Number (EIN).

You will be reimbursed for:

  • Dependent Care FSA expenses with dates of service between January 1 and December 31 of the plan year.
  • Health Care FSA expenses incurred in the grace period from January 1 of the plan year to March 15 of the next calendar year.

There is no grace period for the Dependent Care FSA. You have until April 30, 2013, to submit documentation for reimbursement of 2012 health care expenses. This means you must plan carefully the amount you put into your FSA so that it does not exceed the amount you are likely to pay for eligible expenses. Fortunately, many of these expenses can be predicted in advance.

It’s important that you calculate the right amount to contribute to your FSA. Unlike an HSA, the amounts in your FSA cannot be carried over from year to year. Instead, IRS regulations require that any unspent funds in your FSA must be forfeited. The deadline to incur a 2012 expense is March 15, 2013. The deadline to submit a 2012 claim is April 30, 2013.