Health Care and Dependent Care Flexible Spending Accounts (FSAs) provide a method to pay for expenses not covered or only partially covered by an employer’s medical, dental, or vision plans and for qualified dependent care expenses such as child day care. Each type of account is designed to serve different needs and accounts may not be combined. You may participate in either or both FSA accounts even if you choose to waive Loyola’s medical coverage. FSAs reduce your total taxable income, which results in savings of Medicare, Social Security, federal and most state income taxes. Tax savings are based on the total contributions made into these accounts.
You may direct funds into either or both accounts by authorizing money to be deducted from your paycheck. Funds not claimed are forfeited under the "use it or lose it" federal requirement. The maximum plan year contribution is $5,000 for dependent care and $2,550 for the health care account.
Effective January 1, 2011, over-the-counter (OTC) medicines and drugs will require a written prescription from a doctor. This new rule applies to all purchases made on or after January 1, 2011. Read the full notice on OTC medicine supplement.
Change is Coming!
Beginning July 1, 2016 Flexible Spending Accounts (FSA) will transition to a new and enhanced system administered by ConnectYourCare, a leader in FSA administration. Your FSA will still offer the same tax-savings benefits, but with ConnectYourCare as our administrator, you will enjoy many additional conveniences. To read more about it click here. Please stop by the benefits fair on April 27, 2016 to meet a representative.
Do you want to know more about the FSAs? Watch the account overview here.
TASC Online (up to June 30, 2016)