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. Each type of account is designed to serve different needs and accounts may not be combined. For example, money in your health care FSA may not be used to pay for dependent care (child care, elder care) expenses. Health Care accounts are used to manage eligible, out-of-pocket healthcare expenses for yourself, spouse and children. Dependent Care accounts are used to manage eligible, out-of-pocket child daycare or adult daycare expenses.
You may enroll 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. The American Rescue Plan Act of 2021 (ARPA) significantly increases the availability of dependent care tax credits. For many employees, the tax credit in 2021 will provide a greater tax savings than enrolling in the Dependent Care FSA. Consult with a tax advisor to determine, under the revised rules, whether the Dependent Care FSA or the dependent care tax credit makes the most economic sense for your specific situation.
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 IRS "use it or lose it" rule. The maximum annual contribution is $5,000 for dependent care and $2,750 for the health care account.
The Flexible Spending Accounts are administered by ConnectYourCare, now a part of Optum Financial. In order to participate in the Health Care FSA or the Dependent Care FSA you must enroll each plan year. Your account will not rollover to the next plan year. No exceptions. To learn more about FSAs please review the FSAs for Dummies resource guide or visit the ConnectYourCare website. There are a variety of resources on the website including:
- How an FSA works
- List of qualified medical expenses
- Contribution and balance calculators
ConnectYourCare’s mobile app, myCYC, reduces the time it takes to act on each step. To learn more about myCYC please review the myCYC flyer.
• Check your balance
• Review payments
• Request a payment
• Upload receipt image
• See eligible expenses
• Call Customer Care
You may have questions about the requirements for submitting receipts when the payment card is used to pay for a service. This CYC flyer provides an explanation of the receipt substantiation requirements.
• IRS rules require that all FSA claims be substantiated.
• If the claim cannot be auto-substantiated the participant is required to submit documentation to support the claim.
• You should save itemized receipts and documentation for all health care services – even when you paid with your payment card.
FSA Store – Everything Flex Spending
Thousands of everyday health products are health care FSA eligible, like baby care health essentials, sunscreen, health trackers, pain relief products and more! The FSAstore.com is a one-stop shop stocked exclusively with FSA eligible products and services so there are no guessing games as to what is and is not reimbursable by your FSA account. The FSAstore.com accepts all FSA-debit and major credit cards, offer 24/7 customer service, one-to-two day turnaround and free shipping on orders over $50.
Pandemic Related Expenses
To learn about other eligible medical expenses related to the pandemic, such as COVID-19 at-home-testing kits, OTC cold/flu medications and more, visit https://www.connectyourcare.com/blog/create-your-covid-19-tool-kit-fsa-hsa-funds/
Summary Plan Description
This website provides a summary of the benefits available. The University reserves the right to modify, amend, suspend or terminate any plan at any time, and for any reason without prior notification. You will be notified of any changes to these plans and how they affect your benefits, if at all. The plans described on this website are governed by insurance contracts and plan documents, which are available for examination. We have attempted to make explanations of the plans on this website as accurate as possible. However, should there be a discrepancy between this website and the provisions of the insurance contracts or plan documents, the provisions of the insurance contracts or plan documents will govern. In addition, you should not rely on any oral descriptions of these plans, since the written descriptions in the insurance contracts and plan documents will always govern.