Flexible Spending Accounts

If you are a full-time University benefit-eligible faculty or staff (.80 FTE or higher), you are eligible to enroll in our flexible spending accounts. 

Note: If you are enrolled in HDHP you will be eligible to enroll in a limited flexible spending account (dental and vision only) instead of a full health care flexible spending account. Dependent care flexible spending accounts are available regardless of health care plan option chosen, as long as you have at least one eligible dependent.

The University recognizes the need to provide a program that helps you pay for expenses not covered by your health plan, and expenses related to dependent care. Flexible Spending Accounts (FSAs) for health care and/or dependent day care expenses, used properly, can help save you money on these expenses.

By participating in either or both of these flex accounts you use tax-free dollars deducted from your paychecks to pay for certain out-of-pocket expenses. The dollars you save are from the following payroll taxes:

• Federal income tax;
• State income tax (in most cases); and
• Social Security (FICA) tax.

Under the guidelines of this program, the IRS Code specifies that:

• Any money not used for allowable expenses within the calendar year is forfeited and will not be refunded.
• Requests for reimbursement of dollars expended within the benefit calendar year must be submitted to Benefit Express along with the required documentation, prior to March 31 of the following year.
• Expenses reimbursed through these accounts cannot be claimed as deductions or credits when you file your income tax returns.

Health Care Flexible Spending Account is a pre-tax benefit account used to pay for eligible medical, dental, and vision care expenses that aren’t covered by your insurance plan or elsewhere. It’s a smart, simple way to save money while keeping you and your family healthy and protected. The minimum amount you can contribute per calendar year is $240 and the maximum is $3,300 (subject to change yearly, based on IRS regulations). 

Dependent Care Flexible Spending Account is a pre-tax benefit account used to pay for dependent care services, such as preschool, summer day camp, before or after school programs, and child or elder daycare. The minimum amount you can contribute per calendar year is $240 and the maximum is $5,000 (subject to change yearly, based on IRS regulations). 

Limited Flexible Spending Account is a pre-tax benefit account similar to a Health Care FSA, however, the LFSA only reimburses for eligible dental and vision expenses. This account will be available to you if you will have a Health Savings Account (HSA) in the current year. The minimum amount you can contribute per calendar year is $240 and the maximum is $3,300 (subject to change yearly, based on IRS regulations).

If you are a benefit-eligible new hire, you may participate in either or both the health care (or limited) and dependent care flexible spending accounts. You must enroll within your first 31 days of employment. If you do not enroll at this time, the next opportunities to enroll are during the annual benefits Open Enrollment period (generally held during the fall) or if you experience a qualifying event, such as marriage.

The WEX debit card can simplify the process of paying for eligible healthcare FSA expenses. You can use the card at qualifying merchant locations, pharmacies, and doctors’ offices that accept MasterCard. It is your responsibility to ensure that your FSA MasterCard is used only for qualified healthcare expenses, and for checking your account balances to make sure you have sufficient funds available.

When you activate your card, it is loaded with the amount you have elected to contribute to your benefit program. As you use the card to pay for items eligible for reimbursement, corresponding deductions will be made from the card balance. We recommend that you keep all receipts for the entire plan year if supporting documentation is requested. 

The FSA debit card allows you to pay for eligible expenses at the point of service. Additional benefits include:

• Immediate access to your FSA account; you avoid paying with cash or check.
• Immediate payment of the expense; you avoid waiting for the reimbursement check.

The ease of use at the point of sale reduces the burden of having to pay money out-of-pocket, and eliminating the wait for reimbursement has proven to be extremely convenient for plan participants. WEX reserves the right to require receipts or documentation to support some of your debit card purchases. If you receive an email or letter requesting you to provide support documentation for FSA purchases you can follow the directions listed on the notice and upload the documents via the portal. Failure to comply with this request may result in your debit card being deactivated.

If you are not using the debit card for some or all expenses, you may submit requests for reimbursement to WEX Health Inc. (WEX) , along with the required documentation of expenses incurred, after the date you became an eligible participant in the plan. You may choose to receive your reimbursement check through the U.S. mail directed to your home, or you may sign up for automatic direct deposit to your savings or checking account. 

You are required to use the FSA Reimbursement Request Form for submitting all eligible expenses to WEX. 

• WEX forms, along with directions for completion of the form, can be printed from their website. When submitting it, please furnish documentation of expenses incurred either through an itemized statement from the provider, your explanation of benefits form, or ask your doctor, dentist, or pharmacist to complete and sign in the section titled Provider’s Signature on the form.
  • The form allows you to list several expenses at once.
  • There is a minimum of $25 in expenses before the reimbursement will be processed. Remember to sign the form and attach your supporting documentation.
  • Whether the form is faxed or mailed, you should always keep a copy of all information submitted for your records.

To avoid forfeiture of your yearly elections, carefully consider the dollar amount to set aside.

• Review your out-of-pocket expenses for the previous two or three years. Identify how this might change in the current year, and elect amounts that will cover realistic expenses. Estimate your expenses accordingly.
• Determine how much to set aside in your account during enrollment so that you do not have money remaining in the account at the end of the year.
• Enroll via Employee Self Service during Open Enrollment, or within 31 days of your hire date or qualified life event. Access the Employee Self Service Portal using your Loyola username and password to enroll or log in.

Enroll Every Year—If you are participating in a health care, limited or dependent day care flexible spending account, you must enroll every year. Your current election does not automatically carry over from one year to the next. Access the Loyola Employee Self Service portal using your Loyola username and password. You may elect to enter, exit or change your FSA election only if you experience one of the following:

• Change in legal marital status (marriage, divorce, death of a spouse);
• Change in number of tax dependents (birth of a child);
• Employment status change for you, your spouse or dependent;
• Dependent satisfies, or ceases to satisfy, eligibility requirements;
• Residence change by you, your spouse or dependent; or
• Change in cost of covered day care.

A change in benefit elections because of a qualifying event can only be made if it is consistent with the change in family or employment status and if the Human Resources department is notified within 31 days of the change. Remember...

• Reducing your taxable income may affect your future Social Security benefits.
• The IRS will not allow you to take the Dependent Care Tax Credit for expenses reimbursed through your FSA account.
• Depending on your personal situation, the Dependent Care Tax Credit may be more advantageous than the pre-tax flexible spending account.
• Consult your tax advisor.

Your Dependent Care FSA ends with you last paycheck and may not be continued, and you may be reimbursed for eligible expenses you incurred on or before your last date of employment. You have 90 days following your termination date to submit claims which were incurred prior to your termination date. 

The same above rules apply to the Health FSA (and Limited FSA), but you may continue to participate in the Health FSA for the remainder of the plan year under COBRA. Learn more about COBRA or contact benefits@luc.edu.