Flexible Spending Account
Information for: Full-Time Employees; Part-Time Employees with CCE
The Flexible Spending Account (FSA) Plan allows you to set aside funds on a pre-tax basis to pay for unreimbursed, eligible health care expenses and dependent day care expenses. If you are a Full-Time employee, you may enroll within 31 days of your hire date. If you are a Part-Time employee, you may enroll within 31 days from your attainment of CCE status. Participation in the plan begins on the 31st day of employment or 31 days from attainment of CCE status. Your annual election amount should be based on the amount of eligible expenses that you anticipate you will incur between the date you begin participation in the Plan and the end of the same calendar year.
FIT's Flexible Spending Account Plan Administrator is Flexible Benefit Administrators, Inc. (FBA). Once you enroll, you will receive a Benefits Card that may be used to pay for most eligible expenses at the point of service. You will be able to register for an online account (.pdf) which will enable you to view your account balance and transactions, provide substantiation of expenses when requested by FBA, and submit claims for reimbursement of eligible expenses not paid for with your Benefits Card. You may also contact them at (800) 437-3539. Reimbursement claim forms are found in the forms section of the Benefits website.
Below is an overview of the two accounts available: the Health Care Flexible Spending Account and the Dependent Day Care Flexible Spending Account.
Health Care Flexible Spending Account
- Contributions to this account can be used to pay for health care expenses (e.g. office copayments, prescription drug copayments, vision care expenses, etc.) and dental expenses which are incurred by you and your eligible dependents and were not covered, or only partially covered by your health care plan, prescription drug plan, dental plan or vision plan.
- You may choose a calendar year contribution between $100 and $2,850.
- Contributions may be used to pay for eligible expenses incurred by your qualified dependents (as defined by the IRS). You may not use funds in your Health Care Flexible Spending Account to pay for a domestic partner's health care expenses.
Dependent Day Care Account
- Contributions to this account can be used to pay for eligible childcare expenses for qualified dependent children under the age of 13 so that you and/or your spouse can work, look for employment, or go to school on a full-time basis. Day care expenses for your dependent children age 13 or over are not eligible for reimbursement.
- You may choose a calendar year contribution between $100 and $5,000. However, if you are married and filing separate tax returns, and both individuals have a Dependent Day Care Flexible Spending Account, the maximum contribution amount is $2,500 per individual in a calendar year.
- The maximum contribution amounts apply to the amount contributed to all employer plans in the same calendar year.
- Overnight camp expenses as well as educational fees/tuition for your dependent child are not eligible for reimbursement.
- You may also contribute to this account for day care expenses for dependents of any age who are mentally or physically incapable of self-care and whom you claim as a dependent on your federal income tax return.
- To receive reimbursement for a babysitter, a childcare center, or an adult care center, the service must be incurred while you are at work, and you are required to provide the babysitter or dependent care center’s Employer ID Number or Social Security Number.
- In accordance with IRS regulations, FIT’s Dependent Care FSA is subject to annual non-discrimination participation testing to ensure that the plan does not disproportionately favor Highly Compensated Employees (HCE) as defined by the IRS. For purposes of testing, a participant who earned more than the IRS annual income limit in the preceding year (income limit of $130,000 in 2020 for testing which will be conducted in 2022) is considered an HCE. Non-discrimination testing is conducted early each calendar year. If after testing, the plan is found to be discriminatory, 2022-year participants who are considered HCEs will be notified and may experience a reduction in the amount that they may contribute to the Dependent Care FSA in 2022.
- If you do not incur eligible expenses up to your annual election amount by December 31st of the same calendar year you enrolled in the Flexible Spending Account Plan, you will forfeit the unused balance. The unused balance cannot be carried over to the next year. You have until March 31st of the following calendar year to file a paper claim form for reimbursement.
- You must re-enroll in the Flexible Spending Account Plan each year during the Annual Benefits Open Enrollment Period; your election does not carryover from year-to-year.
- Health Care Flexible Spending Account contributions and Dependent Day Care Flexible Spending Account contributions cannot be combined or transferred between accounts. Be sure you are electing the correct type of flexible spending account.
Important Notice Regarding Enrollment:
If you do not enroll in the Flexible Spending Account Plan within 31 days of your date of hire or attainment of CCE status, you will have to wait until the next Annual Benefits Open Enrollment Period in order to enroll. The Annual Benefits Open Enrollment Period is held in November of each year for coverage which will become effective the following January 1st.
If you wish to enroll or make a change to your Flexible Spending Account Plan election outside the Annual Benefits Open Enrollment Period due to a qualified life event as defined by the IRS (e.g. marriage, birth, divorce), you must notify a benefits representative in the Office of Human Resources within 31 days of the event. If you do not notify a benefits representative within 31 days of the qualified life event, you must wait until the next Annual Benefits Open Enrollment Period to elect a contribution amount for the following calendar year.