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Flexible Spending Accounts (FSA)

Flexible Spending Accounts (FSA)

The Arkansas State University System offers flexibleFlexible spendingSpending accountsAccounts (FSAs) to benefits-eligible employees.  The plan isemployees, administered through Optum Financial. Financial You/ mayConnectYourCare check your account and submit expenses online.(CYC).

OnceFSAs enrolled,allow you willto receiveset anaside Optumpre-tax payment card.  You may use your cardmoney to pay for eligible healthcare and dependent care expenses at— IRS-approvedhelping vendors.you  Yousave may use your card anywhere that accepts credit cards for reimbursement balances that have been credited to your card.  Active employees enrolled in the medical FSA plan have until 75 days after the end of the plan year to incur expenses (March 15)money and untilreduce Marchtaxable 31 to submit.  income.

Employees who retire or terminate during the year do not have a grace period.   Their last day of work is the last day they can incur expenses, and they have 60 days to submit expenses.

How the FSA Works

Once enrolled, you’ll receive an Optum payment card that can be used at IRS-approved vendors for eligible expenses.
You can also check your account balance and submit claims online here.

Qualified Expenses

Flexible spending accounts givehelp you the opportunity to tax-shelter income that you can use to pay for qualified healthmedical care orand childcare expenses.  The money you tax sheltercontribute is not includedsubject in yourto federal, state, or FICA wages.taxes.

  • Health Care:Care TaxFSA: shelterContribute between $240 and $3,200400 per employee annually for eligible out-of‐of-pocket health carehealthcare expenses.
  • Dependent Day Care:Care TaxFSA: shelterContribute between $240 and $5,0007,500 per household ofannually annualfor childcare (daycare) costs.

How do I start a Flexible Spending Account?  

You may enroll within your first 31 days of employment for the current calendar year.   Current employees who wish to participate must enroll during the open enrollment period each fall for the next calendar year.   Any funds not claimed during the grace period are forfeited.  

    How
  • New muchemployees canmay Ienroll contributewithin to31 mydays FSA?

    • of

    You can contribute up to $3,200 into a Healthcare FSA for eligible health, dental, vision, or certain over-the-counter expenses. These expenses can behire for youthe orcurrent yourcalendar eligibleyear. tax

  • Current dependents,employees whethermust orenroll during Open Enrollment each fall for the next calendar year.
  • Unused funds not theyclaimed by the deadline are coveredforfeited on the health plan. You must re-enroll every year.

    You can contribute up to $5,000 (per household)IRS intorules.

    • a Dependent Care FSA for child and adult day care expenses for eligible dependent expenses that allow you and, if you are married, your spouse to work, but you must re-enroll every year.

Can I use a Health Care Flexible Spending Account (FSA) with the Classic or Premier Plan?

Yes. The Classic Plan and Premier Plan may be paired with a health care Flexible Spending Account (FSA) that can be used for qualified medical expenses during the plan year. You choose the amount to contribute and then make pre-tax contributions up to the annual IRS limits. The funds in a health care Flexible Spending Account do not roll over from year to year.

How is an FSA different from an HSA?

  • FSAs and HSAs both offer tax benefits and have annual contribution limits.
  • Funds in an HSA roll over from year to year. There is no “use it or lose it” rule.
  • FSAs are "use it or lose it." That means you'll lose any funds you don't spend by the end of the grace period.
  • You can use your FSA to cover eligible healthcare costs at the start of the year. The entire amount is available on day one.
  • With the HSA, you cannot spend more than the funds deposited in your HSA. However, you can save receipts for qualified medical expenses and file for reimbursement after your balance has grown.
  • You can't contribute to an HSA and an FSA in the same year.

Additional flexible spending account (FSA) information can be found through the ASU System Benefits Page

 

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