Flexible Spending Accounts
Caregiving and healthcare cost time and money. Flexible Spending Accounts (FSAs) are practical tools that can help relieve the financial stress of paying for care and healthcare.
A Healthcare FSA can offset healthcare costs, while a Dependent Care FSA can offset costs related to childcare and care of an adult or older adult.
How a Flexible Spending Account saves you money
Your FSA contributions are deducted from your paycheck before taxes are calculated. You then pay your healthcare or dependent care expenses with FSA dollars that were never taxed. That means you take home more of your paycheck than if you paid those same expenses out of pocket after taxes.
Which Flexible Spending Account is right for you?
Are you enrolled in, or planning to enroll in, the PPO Plan or the Alternative Healthcare Plan?
Consider the Healthcare FSA.
The Healthcare FSA covers:
- Co-pays
- Deductibles
- Medical
- Dental and vision expenses
- Over-the-counter drugs
- And more
Are you enrolled in the High-Deductible Health Plan, or planning to?
Consider the Limited Healthcare FSA.
Because the High-Deductible Health Plan already includes a Health Savings Account (HSA), you can only enroll in a Limited Healthcare FSA. The Limited Healthcare FSA covers only dental and vision.
Do you care for a child or adult/older adult?
Consider the Dependent Care Flexible Spending Account.
The Dependent Care Flexible Spending Account offsets costs related to the care of your dependents in order for you to attend work or school.
Flexible Spending Account plans undergo required IRS non-discrimination testing to ensure that highly compensated individuals are not disproportionately advantaged. If the university’s plans were not to meet the non-discrimination guardrails throughout a calendar year, households with a household income of more than $150,000 may be required to reduce Flexible Spending Account contributions.
Contribution and claim details
The following applies to both the Healthcare FSA and the Limited Healthcare FSA:
- Annual contribution max: $3,400 per participant
- Carryover: $680 maximum
- Deadline to submit claims: April 30 of the following year
- Optional debit card: Available for the Healthcare FSA. Use the debit card to pay eligible expenses directly.
Dependent Care Flexible Spending Account
What it covers
The Dependent Care Flexible Spending Account offsets costs related to the care of your dependents in order for you to attend work or school, including
- Childcare
- Babysitters
- Nannies
- Day camps
- Elder care
Full list of eligible dependent care expenses
Contribution and Claim Details
- Annual contribution max: $7,500 per household ($3,750 if married filing separately)
- Carryover: None. The Dependent Care Flexible Spending Account offers a 2.5-month grace period. You can use this year's funds for expenses incurred through March 15 of the following year. Contribute only what you're confident you'll spend within that window.
- Deadline to submit claims: April 30 of the following year
If you participate in Childcare Choice
Reimbursements you receive through the Childcare Choice Employee program count toward your $7,500 Dependent Care Flexible Spending Account limit. Subtract your expected Childcare Choice reimbursement from $7,500 to determine your Flexible Spending Account contribution amount.
If you participate in the Backup Care Program
The subsidy that U of A pays toward your Backup Care usage (not the copay you pay out of pocket) counts toward your $7,500 Dependent Care Flexible Spending Account limit. Check the current program guidelines for the subsidy amount, then subtract it from $7,500 to determine your Flexible Spending Account contribution.
How to contribute to a Flexible Spending Account
How to change your contribution amount
You must enroll each calendar year during Open Enrollment to participate. Your elected amount will be deducted equally over 24 paychecks throughout the calendar year, or 18 paychecks if you are paid over nine months.
You can change your contribution amount during Open Enrollment or following a qualifying life event (marriage, birth, change in employment status, change in dependent eligibility). Complete the FSA - Qualifying Life Event form and be prepared to provide documentation when you submit.
How to submit claims
- ASIFlex website
- ASIFlex mobile app (Google Play or App Store)
- By mailing or faxing the claim form (PDF)
- By recurring direct pay (Dependent care FSA only)
Flexible Spending Account plan administrator: ASIFlex
asiflex.com | 800-659-3035 | asi@asiflex.com
Appendix: Plan documents and definitions
- Participant Plan Information (PDF)
- Describes plan provisions as well as qualifying and non-qualifying expenses
- IRS Publication 502 (PDF)
- Filing for medical and dental expenses
- IRS Publication 503 (PDF)
- Filing for childcare and dependent-care expenses
Forms
Non-discrimination disclaimer
FSA plans undergo required IRS non-discrimination testing to ensure that highly compensated individuals are not disproportionately advantaged. If the university’s plans were not to meet the non-discrimination guardrails throughout a calendar year, households with a household income of more than $150,000 may be required to reduce FSA contributions.
For purposes of claiming expenses under the FSA Dependent Care plan, a qualifying person must be:
- Your dependent child who was (a) under age 13 when the care was provided, (b) for whom you have custody more than 50% of the year, and (c) whom you can claim as an exemption on your federal income tax return; or
- Your dependent (child older than age 13, spouse, parent, or other adult for whom you have custodial responsibility) who (a) is physically or mentally unable to care for himself or herself, (b) shares the same residence with you, and (c) has an income less than the federal exemption amount.