New This Year!
Introducing the FSA Debit Cards
Effective January 1, 2020, those who are enrolled in the PPO 80/20 medical plan and have elected in the Flexible Spending Account will receive a debit card to use for healthcare and/or dependent care expenses (if applicable).
Health Management Initiative
If you have participated in the Health Management Initiative to receive the $300 incentive, this amount will deposited onto your FSA debit card in February. If you did not elect FSA for plan year 2020, then an account will be created on your behalf. For more details on this, please visit Health Management Initiative.
What is a FSA?
A Flexible Spending Account (FSA) allows you to set aside money out of your paycheck to pay for eligible expenses on a pre-tax basis (exempt from federal and state taxes). There are two types of FSAs available: a healthcare account and a dependent care account.
- Employees with a 75% or higher FTE are eligible to enroll in FSAs during our annual Benefit Open Enrollment.
- The Healthcare FSA is available to all benefit eligible employees with one exception. High Deduction Health Plan participants are not eligible – these employees should refer to the Health Savings Account benefit.
- The Dependent Care FSA is available for all benefit eligible employees.
- Enrollment in a FSA is an annual election that expires at the end of the plan year. Re-enrollment is required to participate the following year.
- Enrollment in the FSAs is via the Online Enrollment through WINGS Express. No paperwork is required.
- You will select a per pay period amount which will be deducted from your paycheck over 12 monthly pays for salaried employees and 24 pay periods (2 pays per month) for biweekly paid employees.
- The only other time to take advantage of a FSA is within 31 days of experiencing a qualifying event, such as birth, marriage, loss of healthcare coverage, etc.
A healthcare FSA debit card covers eligible out-of-pocket healthcare expenses that you incur for yourself and/or your dependents. Your elected contributions are deducted from your paycheck on a “pre-tax” basis and, therefore, are subject to IRS regulations.
Common expenses that qualify for debit card use are:
- doctor visits,
- mental health care,
- diabetic supplies,
- dental services,
- chiropractor services,
- eye exams,
- You must have a prescription from your physician to use your debit card for qualified over-the-counter drugs and medicines (e.g. Advil, ibuprofen, cough syrup, etc.).
- Use of the debit card must be for qualified expenses that are incurred for yourself and/or your dependents as defined within the IRS regulations (please refer to www.irs.gov.)
For more information on the debit card set up and frequently asked questions, please review the “FSA Plan Details” and “FSA Brochure”.
Employee Contribution Limits/Carryover
- Maximum contribution is limited by the IRS to $2,700 for 2019. The IRS has not published the limit for 2020.
- Minimum contribution is $10 per month.
- Your entire annual election is available on your debit card as of January 1 of the plan year and can be used for healthcare expenses even though your payroll deductions have yet to occur.
- If you still have up to $500 remaining on your debit card at the end of the plan year, these funds will rollover into the next year, allowing you until the end of the second year to utilize these dollars for expenses incurred in the second year.
- This up to $500 carryover is in addition to any current year election. For example, if you have $500 remaining from year 2019, and you elect to contribution $2,700 for year 2020, you have a total of $3,200 to utilize during year 2020. At the end of 2020, you have automatic carryover up to $500 into year 2020.
Employer Contributions/Health Management Initiative
- Wright University’s contribution ($300) is given if you participated in the Health Management Initiative and satisfied all the requirements. Please visit Health Management Initiative for more details.
- The employer contribution amount is not combined with the employee’s contribution limit. Therefore, the election amount you decide to contribute to your Healthcare FSA is not affected by the amount the employer contributes.
Dependent Care FSA
A dependent care flexible spending account can be used for work-related eligible childcare and elder-care expenses, that allows you, and if married, your spouse to work, seek employment, or attend school full-time. Your elected contributions are deducted from your paycheck on a “pre-tax” basis and therefore are subject to IRS regulations.
Common expenses that qualify for reimbursement are:
- before and after school programs,
- nursery school or preschool,
- summer day camp (not overnight)
- FSA debit card can only be used for qualified dependents, such as a child under age 13 and older dependents, such as a spouse, parent, or older child, who is physically or mentally incapable of caring for themselves, reside in your home at least 8 hours per day, and are claimed as your dependents for income tax purposes. Please refer to www.irs.gov for further dependent definitions.
- Your pay period election is available to you for reimbursement at the time it is deducted from each pay period.
- Services for dependent care can use the FSA debit card, or can be claimed as a Child Care Credit on your federal tax return, but not both. You may want to consult with a tax advisor to determine which method is best for you.
- Maximum IRS contribution limit is $5,000 per year ($2,500 for married filing separate) for 2019. The IRS has not published the limit for 2020. In addition, there are restrictions if your spouse’s income is below $5,000 or your spouse is a full-time student. Plus if your spouse is a participant in the same or another cafeteria plan, the combined total of Dependent Care FSA elections cannot exceed $5,000. Please refer to www.irs.gov for further clarification.
- Minimum contribution is $10 per month.
Balance remaining in your Dependent Care FSA will be forfeited.