Sometimes called “flexible reimbursement accounts,” flexible spending accounts allow you to set aside money to pay for certain kinds of medical, dental, and dependent-care expenses before taxes are assessed on that income.
Contributions are made throughout the calendar year, and eligible expenses must be incurred within that calendar year or within the grace period — if you don’t use all eligible funds from your account, the remaining amount is forfeited. Typically, you pay your bill first and submit your receipts to Group Dynamic for reimbursement.
Special note regarding COVID19: The CARES Act (PDF), which took effect on March 27, 2020, now permits FSA and HSA reimbursement of over-the-counter products without the need of a prescription, along with menstrual products.
- Full- or half-time faculty or staff.
- Covers expenses for self, spouse, and dependent children.
- Your contributions will stop the last day you physically worked in a benefits-eligible position. Employees whose benefits-eligible position ends during the plan year have until May 30 of the following year to submit expenses incurred through their last day physically worked in the benefits-eligible position for both dependent care expenses and medical expenses.
- Please review the Summary Plan Description for more eligibility details and consult with Human Resources for specific situations.
Medical Flexible Spending Account
Eligible employees can elect between a minimum of $250 and a maximum of $2,700 in a calendar year on a pre-tax basis for certain health care needs for yourself, your spouse or your dependent children (up to the age of 26). Please note that you may not opt for a Medical FSA account if you are participating in an HSA plan.
- What medical expenses are FSA Eligible? Link to a tool that will help you look up and determine what medical expenses are reimbursable with your FSA account.
Dependent Care Flexible Spending Account
Eligible employees can elect between a minimum of $250 and a maximum of $5,000 in a calendar year on a pre-tax basis for certain care needs of dependent children through the age of 12.
Consult with your tax advisor regarding your limit.
$5,000 per plan year (Single or Married, filing jointly)
$2,500 per plan year (Married, filing separately)
The University of New England has added a time extension at the end of the plan year during which you may incur eligible expenses and be reimbursed from your Flexible Spending Account. We have a 2.5 month grace period after our plan year of January 1 through December 31.
This means that you have until March 15 to incur medical or dependent expenses and until May 30 to submit any claims incurred during the previous plan year or during the grace period.