Flexible Spending Accounts (FSA)
Seattle University offers you special plans that can reduce your tax bill for expenses related to health or dependent care. If you are unfamiliar with the benefits of participating in an FSA, visit our plan administrator’s site at www.flex-plan.com.
Health Care Spending Account
Allows you to pay eligible health care expenses for yourself and your eligible dependents with tax-free dollars. Eligible expenses may include deductibles, copays, out-of-pocket vision or dental expenses, and prescribed over-the-counter medications. The eligible amount to contribute to a Health Care FSA per the IRS is $2,500.
|Reimbursable claims may be incurred during January 1 through December 31 each year. You may submit claims for yourself and your eligible dependents until March 31, 2015 for claims incurred in 2014.
Don't wait for reimbursement. Rather than completing a claim form and waiting for reimbursement for your out of pocket eligible expenses, you can elect a Flexi-Card and pay your provider directly for qualified health care expenses.
Dependent Care Spending Account
Enables you to pay for work-related dependent care expenses with tax-free dollars. Eligible expenses may include daycare centers, in-home child care and before/after school care. You can set aside $5,000 ($2,500 if married and filing separately).
You’re eligible to enroll in a Health Care FSA as long as you or your spouse aren’t actively contributing to a Health Savings Account (HSA). If you’re enrolled in a HSA, you can still take advantage of the tax benefits of a Dependent Care Spending Account.
How an FSA Works
If you elect to participate in an FSA, you must do the following:
- Each year, during Open Enrollment, you will need to enroll and determine the amount you want to contribute per paycheck.
- You may contribute up to $2,500 per plan year to the Health Care FSA.
- You can also contribute up to $5,000 per plan year to the Dependent Care FSA ($2,500 if married and filing separately).
- Contributions to your FSA are deducted from your paycheck in equal amounts throughout the year before taxes are taken out, which means more money in your wallet.