A flexible spending account (FSA) allows you to set aside money pre-tax to use for qualified medical expenses, childcare, or elder care.
How FSAs Work
FSAs allow you to save money by reducing your taxable income. You set aside pre-tax money into the fund. When you incur a qualifying expense, you get reimbursed from the fund. You do not count the reimbursed money as income and never have to pay taxes.
Watch this Introduction to FSAs video
How To Participate
You must enroll each calendar year during the benefits open enrollment period to participate. You select an amount to put into your FSAs for the coming year. The amount you choose will be deducted equally over the course of 24 paychecks throughout the calendar year.
When you incur a qualifying expense, you submit a claim to the plan administrator, ASIFlex, who will issue you a check or direct deposit reimbursement. (A debit card is also available for the Health Care FSA.)
FSA Options
Are you curious about the different health savings account options? Review this comparison chart to make the best decision.
Health Care FSA
Co-pays | Deductibles | Medical, dental, and vision expenses | Over-the-counter drugs | Illness-related transportation
Annual contribution max: $3,200/participant
Year-to-year rollover: $640 max
Deadline to submit claims: April 30 of the following year
Optional debit card: Use the debit card to pay directly for eligible expenses. Learn more about debit cards.
Note: Enrollees in the High Deductible Health Plan with Health Savings Account may not enroll in the full Health Care FSA, but may enroll instead in the Limited Health Care FSA. The Limited Health Care FSA covers expenses related to dental, vision, or out-of-network preventive care services.
Dependent Care FSA*
Childcare | Babysitters** | Nannies | Day camps | Elder care
Annual contribution max: $5,000/household
Year-to-year rollover: 2.5 month grace period (contributions in a calendar year can be applied to expenses incurred through March 15 of the following year).
Deadline to submit claims: April 30 of the following year
Who is a dependent? (See full definition in the appendix):
- A child under the age of 13;
- A family member or adult who is unable to care for themselves, shares your residence, and meets income requirements
* Expenses must be incurred to enable you and your spouse to attend work or school
** Babysitting cannot be reimbursed if provided by your spouse or one of your own dependent children
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.
Choosing Your Contribution Amount
When you enroll in an FSA, you must elect an amount to withhold for the plan year. This amount is based on your estimate of your family's annual health and/or dependent-care expenses.
The amount you withhold is "use it or lose it." To avoid losing unused funds at the end of the year, we recommend making conservative estimates of your expenses. The Dependent Care FSA has a grace period, allowing you to claim expenses incurred through March 15 of the following year. The Health Care FSA allows some rollover from one year to the next, but the amount is capped. The Dependent Care FSA has no rollover.
How To Change Your Contribution Amount
You may only change your elected contribution amount in the following situations.
Open Enrollment: Usually occurs in October and November
Qualifying Life Event*:
- Change in family (marriage, birth, etc.)
- Change in employment status
- Change in dependent eligibility
All qualifying life events are listed on the change form
Change Form (PDF)
*You must request changes within 31 days of the event.
How To Submit Claims
Our FSA plan administrator: ASIFlex
asiflex.com | 800-659-3035 | asi@asiflex.com
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)
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
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.