Administered by WageWorks, Inc., 1-877-924-3967

The Montana University System Benefits Plan offers three (3) optional Flexible Spending Accounts (FSA).  These optional reimbursement accounts (FSAs) can work to your advantage by allowing a benefits eligible employee to set aside a portion of each paycheck (pre-tax), in equal installments throughout the Plan Year (July 1 – June 30), to pay for qualified out-of-pocket expenses for health care and/or dependent care (day care) that you and/or your eligible dependents incur during the Plan Year. Expenses are considered “incurred” on the date the service was performed, not the date the expense is paid. You must re-enroll each Plan Year in the HCFSA/LPFSA and/or DCFSA to continue contributions each Plan Year.

If you enroll in a FSA during your initial enrollment, your account(s) becomes effective the first day of the month following your date of hire.  If you enroll in a FSA during Annual Enrollment, your account(s) becomes effective July 1st. FSA funds may only be used for expenses incurred on or after the FSA effective date and can be used at any time during the Plan Year. 

When you enroll in a FSA, you are electing to participate for the entire Plan Year (July 1 – June 30). No changes to your FSA election may be made during the Plan Year unless you experience a qualifying event. Changes must be consistent with the change in status or qualifying event.

Refer to the Flexible Spending Account Plan Document (FSAPD) and the Summary Plan Description (SPD) on the Choices home page for complete FSA information.

 

Retirees are not eligible to participate in Flexible Spending Accounts.

 

IMPORTANT!

You MUST re-enroll each Plan Year to participate in a Flexible Spending Account.

You MUST re-enroll each Plan Year for any unused HCFSA/LPFSA contribution amounts to rollover into the next Plan Year or they will be forfeited.

“use it - or - lose it”

Enrollment is NOT automatic!

 

 Quick Start Guide:  HCFSA / DCFSA
 Quick Start Guide:  LPFSA

 

FSA Account Options FSA Annual Contribution Amount FSA Qualifying Expense Examples

Health Care FSA

 Minimum: $120
Maximum: $3,200

Health care expenses for medical, dental, vision and Rx services, including but not limited to, deductibles, coinsurance, and copays.
Limited Purpose FSA Minimum: $120
Maximum: $3,200		 Dental and Vision expenses only, including but not limited to, dental exams, dentures, contacts, eyeglass frames and lenses.
Dependent Care (Day Care) FSA Minimum: $120
Maximum: $5,000		 Expenses for dependent care (day care) provided to your child(ren) under age 14, or other dependents unable to care for themselves, and is necessary for you to remain employed.


Health Care Flexible Spending Account (HCFSA)

A HCFSA allows an employee to set aside contributions (pre-tax) to pay for qualified out-of-pocket medical, dental, vision, and/or Rx expenses which are not fully covered by the group health plan. HCFSA expenses which are eligible for reimbursement include those defined by IRS Code, Section 213(d). For a list of eligible expenses, visit WageWorks.

The amount you elect to set aside for HCFSA expenses is not subject to federal income, state income, or Social Security/Medicare taxes.

Limited Purpose Flexible Spending Account (LPFSA)

If you or your legal spouse contribute to or have a balance remaining in a Health Savings Account (HSA), you are not eligible to participate in the MUS general purpose HCFSA.  You may, however, enroll in a Limited Purpose Flexible Spending Account (LPFSA).

The LPFSA guidelines are the same as the HCFSA, with the exception of eligible expenses.  The LPFSA eligible expenses only include dental and vision expenses.  For a list of eligible LPFSA expenses, visit WageWorks.

Dependent Care (Day Care) Flexible Spending Account (DCFSA)

The DCFSA (day care) is not used for reimbursement of health care expenses.

If both you and your legal spouse work or you are a single parent, you may have dependent day care expenses. The Federal Child Care Tax Credit is available to taxpayers to help offset dependent day care expenses; however, a DCFSA may provide employees a better tax benefit.  You may want to consult your tax preparer to determine which option works best for you.

A DCFSA (day care) allows an employee to set aside contributions (pre-tax) to pay for qualified dependent day care expenses for children under age 14, or for individuals unable to care for themselves.  A dependent receiving day care must live in your home at least eight (8) hours per day.  The dependent day care must be necessary for you and your legal spouse to remain gainfully employed. Dependent day care may be provided through live-in care, babysitters, and licensed day care centers.  You cannot use pre-tax contributions to pay your legal spouse or one of your children under the age of nineteen (19) for providing dependent day care.  Schooling expenses at the kindergarten level and above, overnight camps, and nursing homes are not reimbursable. For a list of eligible DCFSA expenses, visit WageWorks.

Unlike health HCFSAs, DCFSAs (day care) may only reimburse expenses up to the amount you have contributed at any time during the Plan Year.  If you submit a reimbursement request for an amount that is greater than your account balance, that amount will be pended until your next contribution is posted to your account and then any eligible amount(s) will be reimbursed to you.  Under the “use it – or - lose it" rule, any unused DCFSA (day care) contribution amount(s) cannot rollover to the next Plan Year and will be forfeited.

FSA Rollover

The IRS permits HCFSA/LPFSAs to rollover a limited amount of unused HCFSA/LPFSA contributions from one Plan Year to the next.  This means that HCFSA/LPFSA balances from the current Plan Year, can be rolled over to the next Plan Year that begins July 1st.  Be sure not to elect more than you will need to cover expenses incurred by you and/or your eligible dependents during the Plan Year.

~ NEW ~  Beginning 7/1/24, MUS will no longer allow unused FSA contribution amounts to rollover if an FSA participant does not re-enroll in a HCFSA or LPFSA during Annual Enrollment.  Under the “use it – or –lose it” rule, FSA participants must re-enroll in a HCFSA/LPFSA for any FSA contribution amounts to rollover to the next Plan Year or they will be forfeited.

  • $610 of unused FSA contributions from FY2024 (July 1, 2023 – June 30, 2024) will rollover into FY2025 (July 1, 2024 – June 30, 2025) if an FSA is elected for FY2025.
  • $640 of unused FSA contributions from FY2025 (July 1, 2024 – June 30, 2025) will rollover into FY2026 (July 1, 2025 – June 30, 2026) if an FSA is elected for FY2026.

Unused DCFSA (day care) contribution amounts cannot rollover to the next Plan Year and will be forfeited.

Mid-Year Election Changes

**Mid-year changes are allowed to existing FSAs only.  You may not elect a new HCFSA/LPFSA or drop an existing HCFSA/LPFSA during a mid-year change**

Mid-year election changes due to a qualifying event are limited, differ for each FSA option, and must be made within 63 days of the event (subject to Plan restrictions).

For more information about mid-year FSA election changes, please contact your campus Human Resources/Benefits Office.

Reimbursement

You can request reimbursement via mail, toll-free fax, online at WageWorks, or via your mobile device.

If the expense is covered by your health insurance coverage, you must provide the Explanation of Benefits (EOB) as documentation to support your reimbursement request. If the expense is not covered by your health insurance, an itemized statement from the provider may satisfy documentation requirements.

Pay Me Back or Pay My Provider:  When filing a request for reimbursement, you may elect to have WageWorks make the payment direct to you (Pay Me Back) or to pay your provider (Pay My Provider) directly.   You may also elect to have recurring payments for DCFSA (day care) expenses or recurring HCFSA expenses, such as monthly orthodontic claims.

Direct Deposit:  You can enroll in Direct Deposit online at WageWorks and WageWorks will electronically deposit reimbursements directly into your bank account.

HCFSA/LPFSA Debit Card:  You will receive a HealthEquity/WageWorks VISA debit card upon enrollment in a HCFSA or LPFSA, at no cost to you. You may use the debit card to pay for your qualified HCFSA/LPFSA expenses. Documentation to substantiate debit card expenses may be required, so keep all debit card transaction receipts, Explanation of Benefits (EOB), and other supporting documentation when you use your debit card.  Debit cards cannot be used to pay for expenses that were incurred prior to the FSA effective date or current Plan Year.

Claims for eligible expenses that were incurred during the Plan Year (July 1-June 30) must be received by WageWorks before September 30th after the current Plan Year ends, to be eligible for reimbursement.  If you terminate employment during the Plan Year, your participation in the FSA ends on the last day of the month in which your employment terminates, however, you may submit claims before September 30th after the current Plan Year ends, if the claims were incurred during your period of employment, and during the current Plan Year.

Tax Savings Calculators

You can access tax savings FSA calculators for accurate savings estimates.