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 their earnings (pre-tax) to pay for eligible out-of-pocket expenses for health care and dependent care (day care) that you, your legal spouse, and your qualified dependents incur during the Plan Year. FSA contributions are taken out of each paycheck (pre-tax) in equal installments throughout the Plan Year (July 1 – June 30).  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 your FSA effective date and can be used at any time during the benefit Plan Year. 

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

 

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.

Enrollment is NOT automatic!

 

 

FSA Account Types Annual Amount Qualifying Expense Examples

Health Care FSA

Minimum: $120
Maximum: $2,850

Health care expenses, including but not limited to, deductibles, coinsurance, copays, dental, vision, and Rx expenses

Limited Purpose FSA Minimum: $120
Maximum: $2,850
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 day care provided to your child(ren) under age 14, or other dependents unable to care for themselves, and necessary for you to remain gainfully employed.


Health Care Flexible Spending Account (HCFSA)

During your initial enrollment and/or during the annual enrollment period, you may elect amounts to be withheld from your earnings to pay for your out-of-pocket health care expenses.  Eligible HCFSA expenses 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.

You can request reimbursement on-line, by toll-free fax, or through the mail.  If the expense may be covered through your health coverage, please provide the coverage Explanation of Benefits (EOB) as documentation. If your health coverage will not consider the expense, an itemized statement from the provider will satisfy documentation requirements.

Limited Purpose Flexible Spending Account (LPFSA)

If you or your legal spouse contribute to a Health Savings Account (HSA), you are not eligible to participate in a general purpose HCFSA.  However, you may 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 expenses, visit WageWorks.

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

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 often gives employees a better tax benefit.  You may want to consult your tax preparer to determine which option works best for you.

Your DCFSA (day care) lets you use "before-tax" dollars to pay dependent day care expenses for children under age 14, or 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, baby sitters, and licensed day care centers.  You cannot use "before-tax" dollars 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.

When you enroll in a DCFSA (day care), you are electing to participate for the entire Plan Year (July 1 - June 30).  Unlike health HCFSAs, DCFSAs (day care) may only reimburse expenses up to the amount you have contributed any time during the Plan Year, and you cannot roll over any balance from the current Plan Year to the next Plan Year.

Carryover Funds

When you enroll in a FSA, you are electing to participate for the entire Plan Year (July 1 – June 30).  Be sure not to elect more than you will need to cover expenses incurred by you and/or your qualified dependents during the Plan Year. Under the “use it-or-lose it” rule, any money not used by the end of the Plan Year will be forfeited.  

Under the IRS “use it-or-lose it” rules, HCFSA/LPFSA participants are allowed to carryover up to $570 from one Plan Year to the next.  This means that HCFSA/LPFSA balances, up to $570 from the current Plan Year election, can be carried over to the next Plan Year that begins July 1 and runs through June 30.  

Unused DCFSA (day care) account balances cannot be carried over to the next Benefit Plan Year and will be forfeited.

If an Employee does not enroll in a HCFSA or LPFSA for the next Benefit Plan Year and has unused FSA funds in the amount of $50 or less that are not expended by June 30th of the prior Benefit Plan Year, the FSA will be closed and the remaining unused funds will be forfeited.

Mid-Year Election Changes

**Mid-year changes are allowed to existing FSAs only.  You may not elect a new FSA during a mid-year change**

Mid-year election changes are limited, differ for each FSA option, and must be consistent with and made within 63 days of the qualifying event.

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

Reimbursement

You may elect to have reoccurring payments for recurring HCFSA expenses, such as monthly orthodontic claims or DCFSA expenses.

Mail, fax toll-free, or scan and send claims electronically at WageWorks or via your mobile device.

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 you may elect to have WageWorks pay your provider (Pay My Provider) directly.   You may also elect to have recurring payments for DCFSA expenses or recurring HCFSA expenses, such as monthly orthodontic claims.

Direct Deposit:  Sign up for Direct Deposit online at WageWorks and WageWorks will electronically deposit reimbursements directly into your bank account.

HCFSA/LPFSA Debit Card:  Once you enroll in a HCFSA or LPFSA, WageWorks will send you a debit card to use to pay for your eligible expenses at no cost to the participant.  You may use the debit card to pay for HCFSA or LPFSA expenses.  Documentation for the expenses may be required and should be saved for all debit card transactions.

Claims for eligible expenses that were incurred during the Plan Year (July 1-June 30) must be received by WageWorks by September 30th of the current Plan Year, to be eligible for reimbursement.  If you terminate employment during the Plan Year, your participation in the FSA ends, subject to COBRA limitations.  However, you may submit claims through September 30th of the current Plan Year, if the claims were incurred during your period of employment, and during the Plan Year.

Tax Savings Calculators

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