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 annual contribution for Plan Year 7/1/16 - 6/30/17 is $5,000 for dependent care and $2,550 for the health care account. The maximum annual contribution for the upcoming Plan Year beginning 7/1/17 is $5,000 for dependent care and $2,600 for the health care account.
The Flexible Spending Accounts are administered by ConnectYourCare. 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 FSA's please 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