Flexible Spending Accounts
Online: HealthHub | Phone: 800.284.4885
Summary of Benefits
UAHuntsville employees can take advantage of flexible spending accounts (FSAs), which are pretax reimbursement accounts administered by HealthHub (Powered by PayFlex) for eligible medical and dependent care expenses. Money set aside in these accounts will reduce your taxable income, providing you with more value for the dollar.
Employees must re-enroll in the FSA program during the annual open enrollment for each calendar year.
|2013 Flexible Spending Accounts Limits|
|Health Care Account||$2,500|
|Dependent Care Account||$5,000
$2,500 - married taxpayers filing separate returns
Forms and Reference Guides
- PayFlex Card (debit card) - The PayFlex Card® provides a simple way to spend the money in your PayFlex® account. It is similar to a debit card since it electronically accesses the money loaded onto the card, when used to pay for eligible expenses. All you need to do is select your eligible item, swipe your card, and save your receipt! The PayFlex Card is available only to Healthcare FSA participants.
- eNotify – receive email notifications or web alerts regarding your account.
- PayFlex Mobile – real-time access to your account through PayFlex Mobile application. Submit claims and upload your receipts to substantiate debit card transactions.
- Claim reimbursements - can be submitted online, fax or by mail.
- On Oct. 31, 2013, the Internal Revenue Service (IRS) released Notice 2013-71 (Notice), which relaxes the “use-or-lose” rule for health FSAs. Under the relaxed rule, employers will now be able to allow participants to carry over – instead of forfeiting- up to $500 in unused funds into the next year.
- You may carry-over unused health FSA balance from 2014 to the following year.
- The health FSA money carried over to the next year may be used only for claims incurred within the new plan year.
- You can set aside pretax money via payroll deductions to pay for health care and dependent care expenses not covered by your benefit plan.
- The pretax savings you set aside in your FSA must be used for eligible expenses.
- Debit card feature allows you to pay for eligible expenses at point of sale for your health care FSA.
- Deadline for submitting claims for plan year 2013 is 90 days after plan year.
What is a FSA?
A Flexible Spending Account (FSA) is an employee benefit program that allows you to set aside money on a pre-tax basis for certain kinds of common expenses. With an FSA, you can reduce your taxes while paying for necessary services or expenses. The two types of accounts available are Medical Care Reimbursement and Dependent Care Reimbursement.
The Medical Care Reimbursement Account covers eligible health care expenses not reimbursed by any medical, dental or vision care plan you or your dependents may incur during the plan year. This includes deductibles, co-payments, and other non-covered expenses. You can deposit a maximum of $2,500 for the plan year into a medical reimbursement account.
The Dependent Care Reimbursement Account covers eligible dependent care expenses incurred so you and your spouse, if married, can work, look for work, or your spouse can attend school full-time. You can deposit a maximum of $5,000 if married filing a joint return ($2,500 for single tax filing) for the plan year into a dependent care reimbursement account.
Who Is Eligible?
All regular, full-time employees may participate in the FSA plan. Qualifying medical expenses include expenses incurred for yourself and anyone you claim as a dependent on your federal income tax return. Qualifying dependent care expenses include expenses for your dependent children under age 13 and a person of any age whom you claim as a dependent on your federal income tax return and who is physically or mentally incapable of caring for himself or herself.
When can I enroll?
An open enrollment period is held once each year (approximately from mid November to mid December) for the following plan year. Payroll deductions begin with the January paycheck and are deducted from 26 paychecks. New employees have 30 days from their first day of employment to enroll. If new employees do not enroll during this 30 day period, they will be given the opportunity to enroll at the Open Enrollment period each year. Once enrolled, changes in contributions can NOT be made unless you have a change in status such as marriage, divorce, birth of a child, spouse employment change, or death of a spouse or dependent.
What are the Advantages?
Under Section 125 of the Internal Revenue Code, amounts contributed to an FSA are NOT subject to federal and state income taxes or social security taxes. Employees who participate benefit by reducing their taxable income in order to increase their level of "take-home" pay.
How do I submit a claim?
You can submit a claim for an eligible expense at any time during the plan year (January - December). You have 90 days after the end of the plan year to submit claims. You should include appropriate documentation to support your claims, such as itemized receipts or an explanation of benefits from your insurance company. Click here to learn more about how you can submit your claim for reimbursement.
What happens at termination?
If you terminate employment, your participation in the plan will end and no further salary reduction contributions can be made for medical reimbursement or for dependent care reimbursement. If you still have money in your flexible spending accounts, you have access to these monies for any expenses you incurred prior to your termination date. Note the warning below on unused money in a FSA.
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