OPTIONAL FLEXIBLE SPENDING ACCOUNTS
The Montana University System Benefits Plan offers three optional Flexible Spending Accounts (FSA). These optional reimbursement accounts can work to your advantage by reducing your taxes on many out-of-pocket expenses for health care and dependent care. WageWorks, Inc. (www.wageworks.com) administers the Flexible Spending Accounts for the Montana University System Benefits Plan.
|FSA Account Types||
Qualifying Expense Examples
Health Care FSA
Medical expenses, including but not limited to, deductibles, coinsurance, copays, and Rx expenses
|Limited-Purpose FSA||Minimum: $120
|Dental and Vision expenses only, including but not limited to, dental exams, dentures, contacts, eyeglass frames and lenses.|
|Dependent Care FSA||Minimum: $120
|Costs for day care provided to your child(ren) under age 13, or other dependents unable to care for themselves, and necessary for you to remain gainfully employed.|
Health Care Flexible Spending Account (HCFSA)
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 www.wageworks.com/employees/support-center/support-and-faq/forms-eligible-expenses/.
The amount you elect to set aside for HCFSA expenses is not subject to federal income, state income, or Social Security/Medicare taxes.
Your HCFSA election will reimburse you for eligible expenses that you, your spouse, and your qualified dependents incur during the Plan Year. The entire annual amount you elect can be used at any time during the Plan Year.
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 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 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 www.wageworks.com/employees/support-center/support-and-faq/forms-eligible-expenses/.
When you enroll in the HCFSA or the LPFSA, 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 family members during the Plan Year. Under the “use-or-lose” rule, any money not used by the end of the Plan Year cannot be returned to you. However, the IRS “use-or-lose” rules allow $550 to rollover from one Plan Year to the next. This means that up to $550 from this Plan election can be rolled over to the next Plan Year that begins July 1 and runs through June 30.
Dependent Care Flexible Spending Account (DCFSA)
If both you and your 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 lets you use "before-tax" dollars to pay day care expenses for children under age 13, or individuals unable to care for themselves. A dependent receiving care must live in your home at least eight (8) hours per day. The day care must be necessary for you and your spouse to remain gainfully employed. 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 spouse or one of your children under the age of nineteen (19) for providing day care. Schooling expenses at the kindergarten level and above, overnight camps, and nursing homes are not reimbursable.
Unlike health HCFSAs, DCFSAs may only reimburse expenses up to the amount you have contributed any time during the Plan Year.
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**
When you enroll in the flexible spending accounts, you are electing to participate for the entire plan year. Be sure not to elect more than you will need to cover expenses incurred by you and/or your family members during the plan year. In addition, no changes to your election may be made during the Plan Year unless you experience a "qualifying event."
Mid-year election changes must be made within 63 days of a qualifying event. Election changes are limited and differ for each pre-tax option. For more information about mid-year FSA election changes, please contact your campus Human Resources/Benefits Office.
You may mail, fax toll-free, or scan and send claims electronically at www.wageworks.com 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 www.wageworks.com and WageWorks will electronically deposit reimbursements directly into your checking 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 on the WageWorks website at www.wageworks.com/employees/calculators/.