The Health Care Flexible Spending Account is a tax-free account that allows you to pay for essential health care expenses such as deductibles, copays, coinsurance and prescription drugs that are not fully covered by your medical, dental and vision insurance plans. See eligible expenses from our plan administrator, ASIFlex.
IRS contribution limit: $2,700 per employee for the 2019-20 plan year.
- You must incur qualifying expenses between July 1, 2019 and Sept. 15, 2020 for reimbursement by Nov. 15, 2020.
- If you do not use all of your funds within the FSA, the remaining amount will be forfeited.
Limitations: You cannot participate in an HCFSA and a Health Savings Account (HSA) at the same time.
Determine your contributions
FSA contributions start on July 1, the first day of the plan year.
Contributions end on June 30, but you'll have until Sept. 15 to spend your money.
- Our HCFSA is administered by ASIFlex.
- This account is regulated by the Internal Revenue Service (IRS), who determines contribution limits, qualifying expenses and has designated it as a “use it or lose it” account.
- Enrollment in a medical, dental and/or vision plan is not required for you and/or your federal tax dependents to participate in the HCFSA.
- Your FSA becomes effective on your benefits eligibility date if you are a new hire or July 1, if enrolled during Open Enrollment.
- HCFSA enrollment elections do not rollover year after year. You must re-enroll every year during Open Enrollment in order to continue your account for a new plan year.
- Your pre-tax contributions can be a minimum of $10 per month up to an annual total maximum of $2,700 for the 2019-2020 plan year (July 1 to June 30) per employee. The money is deducted from your paycheck pre-tax.
- The amount you elect will be divided by the number of remaining pay periods in the plan year. Your final contribution will be June 30.
- Your election is fixed for the Plan Year however, changes are permitted if you experience a Qualifying Life Event.
- For tax purposes, you are responsible ensuring that your total calendar-year contributions do not exceed the contribultion limits. For example, if you are hired by CU in the middle of our Plan Year and have contributed to a HCFSA with your prior employer, you must keep track of the total contribution amount.
Spending your money
- Funds in the account must be utilized on qualifying healthcare expenses, or you will pay both taxes and penalties.
- Expenses qualify for the HCFSA when they are incurred, not when they are paid.
- ASIFlex, our FSA Administrator, will mail you a Debit Card that you must activate. The Debit Card will be pre-loaded with the FULL amount you elect at your enrollment. When you need to pay for an eligible expense, present your ASIFlex debit card at the time of purchase. This will then pay for the health care service/product straight from your HCFSA account. The use of the card is not paperless, and supporting documentation may be required to substantiate a transaction.
- If you don’t have your ASIFlex Debit Card with you at the time of purchase/services, you can file a claim online at www.asiflex.com or you can download the free mobile app for Android and Apple devices.
Use it or Lose it Accounts
Failure to incur the expense and claim the reimbursement by the deadline will result in the forfeiting of your funds.
- Plan year 2018-2019: You must incur expenses from July 1, 2018 to Sept. 15, 2019 and claim the money by Nov. 15, 2019
- Plan year 2019-2020: You must incur expenses from July 1, 2019 to Sept. 15, 2020 and claim the money by Nov. 15, 2020
Effect on Social Security
Cafeteria plan dollars are deducted from your pay pretax, meaning before federal, state, Social Security and Medicare taxes are paid. Participating in cafeteria plans reduces the salary on which annual contributions to Social Security are calculated, which may result in a reduction of the Social Security benefits received at retirement.
Effect on PERA
Cafeteria plan dollars are deducted from your pay pretax, meaning before federal, state, and Medicare taxes are paid. Your PERA retirement annuity or disability retirement is based on your PERA Highest Average Salary (HAS) calculation. Since cafeteria plans reduce the salary on which PERA calculates benefits, your PERA retirement benefits may be reduced.
Review the FSA plan document.