Enrolling in a Flexible Spending Account

All full-time University (LUC) Faculty and Staff employees scheduled to work in a position classified as .80 FTE (Full Time Equivalent or greater) are eligible to enroll in the FSA plan. All full-time Stritch School of Medicine (SSOM) Faculty and Staff employees scheduled to work in a position classified as .80 FTE (Full-Time Equivalent or greater) are eligible to enroll in the FSA plan.

The University recognizes the need to provide a program that helps you pay for expenses not covered by your health plan and expenses related to dependent care. Flexible Spending Accounts (FSAs) for Health Care Needs and/or Dependent Day Care Needs, used properly, can help save you money on these expenses.   By participating in either or both of these flex accounts you use pre-tax dollars to pay for certain out-of-pocket expenses not covered under your insurance plan.  The dollars you save are from the following payroll taxes:

• Federal Income Tax
• State Income Tax
• Social Security (FICA) Tax

Benefit Express administers the FSA plan for Loyola University.  Once enrolled, it is easy to access information and download forms through their website at www.loyolaexpress.com.  Claim forms may be faxed to Benefit Express at 1-253-793-3766.  For additional information call 1-877-837-5017. 

• Enrolling in a Flexible Spending Account 
• How Much to Contribute 
• Health Care Account 
• Dependent Day Care Account  
• Eligible Expenses and Limitations
• Restrictions For Changing Your Flexible Spending Account(S) 
• Reimbursement

To learn more about Loyola’s Benefits please click on the desired link.  For detailed 2013 Benefit Information please click here.

      Enrolling in a Flexible Spending Account

As a new hire, you may participate in either or both the Health Care and Dependent Day Care Flexible Spending Accounts (FSA). You must enroll within your first 30 days of employment.  If you do not enroll at this time, the next opportunity to enroll is during the annual Benefits Open Enrollment period, which is generally held in the fall.

Each year during the benefits open enrollment period, you decide if you want to participate in one or both of the Flexible Spending Accounts for the following year.  If you decide to enroll in the program, you also will have to decide how much to contribute to each account.  You cannot stop, start, or change this decision during the calendar year unless you experience a change in your family status as defined by the IRS and the Plan.  Yearly enrollment is an IRS regulation.

FSA Debit Card - Benefit Express

The Benefit Express isues a debit card that can simplify the process of paying for eligible medical and dependent care FSA expenses.  You can use the card at qualifying merchant locations, pharmacies and doctors' offices that accept MasterCard.  It is your responsibility to ensure that your FSA MasterCard is used only for qualified medical and dependent care expenses, and for checking your account balances to make sure you have sufficient funds available.  When you activate your card, it is loaded with the amount you have elected to contribute to your benefit program.  As you use the card to pay for items eligible for reimbursement, corresponding deductions will be made from the card balance. 

Special arrangements which have been made with merchants such as Walgreens and Walmart, allow you to make eligible over-the-counter drug purchases that are automatically approved.  In most cases, this means that you will not be required to submit receipts for substantiation, although we always recommend that you keep your receipts in case a situation arises in which a transaction is questioned.  In other transactions outside of Walgreens and Walmart, you will be asked to provide copies of documentation.  We recommend that you keep all receipts for the entire plan year in the event that supporting documentation is requested.

The FSA Debit Card allows you to pay for eligible expenses at the point of service.  Additional benefits include:

• Immediate access to your FSA account - you avoid paying with cash or check.
• Immediate payment of the expense - you avoid waiting for the reimbursement check.

The ease of use at the point of sale, reduces the burden of having to pay money out-of-pocket, and eliminates the wait for reimbursement - have proven to be extremely convenient for plan participants. [If you prefer not to use your Debit Card or unable to, please follow instructions under the "Reimbursement Process" list in this section].

   How Much to Contribute

There are maximum allowable contributions that limit the salary dollars you may set aside.  The health care FSA yearly election maximum for 2013 is $2,500.The new limit is per participant and not per household. Therefore, if a husband and wife both participate in their respective employer’s FSA plans, they may have a combined household pre-tax contribution of $5,000 for the taxable year but neither may contribute more than the $2,500 per person pre-tax limit (e.g. one cannot contribute $2,000 and the other contribute $3,000).

  In addition, under the guidelines of this program, the IRS Code specifies that:

1. Any money not used for allowable expenses within the calendar year is forfeited and will not be refunded.
2. Requests for reimbursement of dollars expended within the benefit calendar year must be submitted to Benefit Express along with the required documentation, prior to March 31, of the following year.
3. Expenses reimbursed through these accounts cannot be claimed as deductions or credits
   when you file your income tax returns.

To avoid forfeiture of your yearly elections, consider carefully the dollar amount to set aside.  Review your out-of-pocket expenses for the previous 2 or 3 years.  Identify how this might change in the current
year and elect amounts that will cover realistic expenses. Because this program offers tax savings
under IRC Section 125, your unused pre-tax salary reductions cannot be returned to you or rolled-over into future plans years.  IRS regulations require that all funds be used or forfeited in the plan year the salary reduction was made.

      Dependent Day Care Account

The Dependent Day Care Account is designed to pay for the care of children or adults who qualify so that you can work.  Eligible expenses include:

You will need to provide detailed information about your dependent care provider including:  name, address and Social Security Number or Tax Identification Number.  Without this information you cannot be reimbursed.

   Your Dependent Day Care Account has a few important limitations:

• Care for your dependent (who must reside in your home for at least 8 hours a day) must be necessary in order for you and your spouse (if married) to work.
• Eligible dependents are defined as children under age 13, or a spouse or legal dependent of
  any age who is physically or mentally incapable of self-care.
• Dependent Care, such as private baby-sitting, may not be provided by someone who can
  be claimed as your dependent for tax purposes, such as an older son or daughter.
• If dependent care services are provided at a day care center, the center must comply with
  applicable state and local laws and licensing requirements.
• Maximum contribution the total amount of money that can be set aside on a pre-tax basis for dependent care cannot exceed $5,000 per household per tax year.

         Health Care Account 

      Eligible Expenses and Limitations

Many different health care expenses are eligible for reimbursement from your Health Care Reimbursement Account.  Eligible health care expenses are expenses incurred by you and your dependents for "medical care" as defined by IRS code.  Generally, this means an item for which you could have claimed a medical care expense deduction on an itemized federal income tax return, for which you have not otherwise been reimbursed or could be reimbursed from insurance or some other source.  You, your spouse, or an eligible dependent must incur these expenses.  Only those expenses incurred while you are a participant in the Flexible Spending Accounts plan are eligible for reimbursement.  You may claim reimbursement for your health care deductibles, co-payments, expenses not covered by other plans, routine physical or dental examinations, infertility treatments, braces and other orthodontia, birth control items, vision expenses, and hearing expenses.  

To assist you, please see the chart located on the next page for some of the common eligible and ineligible expenses.

*This list does not cover all eligible expenses.  Consult Benefit Express for questions or concerns.

**The Internal Revenue Service (IRS) ruled in IRS Revenue Ruling 2003-102 that over-the-counter
drugs are available for reimbursement under the FSA Plan provided they are purchased for personal use or for use by a spouse or dependent and the over-the-counter drug must alleviate or treat personal injury or sickness. Starting January 1, 2011, certain over-the-counter drugs will require a physician's prescription. For more information, .

***The above list summarizes several ineligible expenses.  For a complete listing consult Benefit Express.

      Restrictions for Changing Your Flexible Spending Account(s)

You may elect to enter, exit, or change your FSA election only if you experience one of the following events:

A status change can be made only if it is consistent with the change in family or employment status, if the Human Resources Department is notified within 30 days of the change.

IRS requires anyone contributing to a Dependent Day Care Flexible Spending Account to complete Form 2441.  The form can be found on the Benefits website.

      Reimbursement

You may begin submitting requests for reimbursement, along with the required documentation of expenses incurred, after the date you became an eligible participant in the plan.  You may choose to receive your reimbursement check through the U.S. mail directed to your home or you may sign up for automatic Direct Deposit to your savings or checking account.  The request for Direct Deposit can be accessed through Benefit Express by visiting the Website at www.loyolaexpress.com.

You are required to use the FSA Reimbursement Request Form for submitting all eligible expenses to Benefit Express.  Benefit Express forms can be printed from their website along with directions for completion the form.  When submitting it, please furnish documentation of expenses incurred either through an itemized statement from the provider, your explanation of benefits form, or ask your doctor, dentist, or pharmacist to complete and sign in the section titled Provider’s Signature on the form.  The form allows you to list several expenses at once. There is a minimum of $25.00 in expenses before the reimbursement will be processed.  Remember to sign the form and attach your supporting documentation.  The easiest way to submit the form for reimbursement is by fax at 253-793-3766.  Whether faxed or mailed, you should always keep a copy of all information submitted for your records

Remember….

Reducing your taxable income may affect your future Social Security Benefits.

The IRS will not allow you to take the Dependent Care Tax Credit for expenses reimbursed through your FSA account.

Depending on your personal situation, the Dependent Care Tax Credit may be more advantageous than the Pre-Tax Flexible Spending Account.

Consult your tax advisor.

 Actual savings will vary based on your individual tax situation.

**Please note that the deadline in which to submit reimbursement claims against your 2012 plan year balance is 3/31/2013. This reminder applies to all active employees and participants in the 2012 FSA plan/s.**