Flexible Spending Accounts (FSA)
Health Care Reimbursement Account (HCRA)
The HCRA enables you to tax shelter a predetermined amount to be used for health care expenses not covered by insurance. You may elect to have up to $2500 credited to this account. Please examine your health & dental insurance plans to estimate what your out-of-pocket expenses will be.
On the enrollment form, you designate the total annual amount to be contributed to your HCRA. Employee contributions will be deducted on a pre-tax basis at each monthly or bi-weekly pay period. Your account will be fully funded as of January 1 for the annual contribution you elect. You may submit claims as expenses are incurred during the year and will receive full reimbursement up to your maximum annual contribution. Remember that claims must be incurred no later than March 15th of the following year. Any balance in the account after March 15th must be forfeited in accordance with IRS rules. Please estimate carefully.
Dependent Care Reimbursement Account (DCRA)
The DCRA provides the option to tax-shelter the amount you pay for dependent (day care) expenses if these amounts are paid to permit the employee (and spouse) to be employed. This option may be taken instead of the tax credit on your individual federal tax return. You may elect to have up to $5,000 credited to this account. The enrollment form allows some flexibility in how your account will be funded through the year. Unlike the Health Care Account, your account will be funded as you contribute to it and you will receive reimbursement for actual expenses. Like the Health Care Account, any balance in your account after March 15th must be forfeited.
Employees may revoke their cafeteria plan elections mid year only if there is a change in family status. The changes in family status are:
- Marital Status
- Death of a spouse or child,
- Birth of a child or adoption of a child by the employee
- Termination of a spouses employment
- Commencement of employment by the employee's spouse
- A switch from part-time to full-time employment or visa versa by either the employee or the employee's spouse
- The taking of an unpaid leave of absence by either the employee or the employee's spouse, and
- A significant change in the employee's or the spouses health coverage that is attributable to the spouses employment.
Both the revocation and the new election must be on account of and consistent with the change in family status. A benefit election change is considered to be consistent with family status change only if the election change is necessary or appropriate as a result of the family status change. Changes must be made within 30 days of a change in status. Please visit the Human Resources should you desire a summary plan document.
Non-exempt staff deductions will be spread over 26 pay periods. Exempt faculty and staff deductions will be spread over 12 pay periods.
Claims are processed through TASC. Reimbursements will be made in a separate check mailed to your home or by direct deposit to your bank account.
IRS Publication 502 offers direct information regarding what eligible expenses are.