Flexible Spending Account
A Healthcare Flexible Spending Account (FSA) is an IRS pre-tax benefit account used to pay for eligible medical, dental, and vision care expenses that aren’t covered by your insurance plan or elsewhere.
A Dependent Care account is another IRS a pre-tax benefit account used to pay for dependent care services while you are at work. The money you contribute to a Dependent Care FSA is not subject to payroll taxes, so you end up paying less in taxes and taking home more of your paycheck. Under this type of account, a "dependent" is a child under 13 years of age (until the day of their 13th birthday) and adult dependents who can't take care of themselves.
- NEW - FSA Health Care and Transit Maximums: As of October 19, 2017, the IRS announced new maximiums for FSA healthcare = $2650.00 & Transit = $260.00/monthly. Each increased by $50 from 2017.
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 and/or dependent day care expenses, used properly, can help save you money on these expenses.
- Benefit Express administers the FSA plan for Loyola University.
- Once you are 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 253.793.3766. For additional information, call 877.837.5017.
By participating in either or both of these flex accounts you use tax-free dollars deducted from your paychecks to pay for certain out-of-pocket expenses. The dollars you save are from the following payroll taxes:
- Federal income tax
- State income tax (in most cases)
- Social Security (FICA) tax
Benefit Express Address
1700 E. Golf Road, Suite 1000
Schaumburg, IL 60173
- 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 election amount during the calendar year unless you experience a qualifying event, as defined by the IRS and the plan. Yearly enrollment is an IRS regulation.
- 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.
- Benefit Express forms can be printed from their website along with directions for completion of 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 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 the form is faxed or mailed, you should always keep a copy of all information submitted for your records.
- Any money not used for allowable expenses within the calendar year is forfeited and will not be refunded
- 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
- Expenses reimbursed through these accounts cannot be claimed as deductions or credits when you file your income tax returns
- Review your out-of-pocket expenses for the previous two or three years. Identify how this might change in the current year and elect amounts that will cover realistic expenses
- Change in legal marital status (marriage, divorce, death of a spouse);
- Change in number of tax dependents (birth of a child);
- Employment status change for you, your spouse or dependent;
- Dependent satisfies, or ceases to satisfy, eligibility requirements;
- Residence change by you, your spouse or dependent; or
- Change in cost of covered day care.
- 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.
- In-home care;
- Care at another’s home;
- Nursery or preschool tuition;
- After-school care;
- Dependent care centers; and
- Summer day camp as long as that cost compares reasonably with other alternatives.
- Care for your dependent (who must reside in your home for at least eight 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 whom is physically or mentally incapable of self-care.
- Dependent care, such as private babysitting, 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
- Health care deductibles
- Expenses not covered by other plans
- Routine physical or dental examinations
- Infertility treatments
- Braces and other orthodontia
- Birth control items
- Vision expenses
- Hearing care expenses