Flexible Spending Plan
Section 125 of the Internal Revenue Code allows employees to convert taxable salaries into non-taxable benefits. Employees may choose to pay for qualified benefits with "before tax dollars," rather than "after tax dollars," thereby, paying less in taxes and having more spendable income.
As of October 31, 2013, the US Treasury Department modified its MEDICAL flexible spending account (FSA) "use-it-or-lose-it" provision to allow rollover of FSA funds.
The following benefits qualify for pre-tax treatment:
- Dependent Care Reimbursement: Covers eligible dependent care expenses up to a limit of $5,000 annually
- Group Dental Plan Premiums: Covers premiums for dental coverage an employee selects which requires a payroll deduction
- Group Medical Premiums: Covers premiums for health insurance coverage an employee selects which requires a payroll deduction
- Medical Reimbursement: Covers eligible out of pocket medical expenses up to an annual limit of $2,550 for 2016 and $2,600 for 2017
- Short-Term Disability Plan Premiums: Covers premiums for income protection for lost time due to accident and sickness
Administrative fees are paid entirely by the University.
A full-time employee is eligible to participate beginning as early as his or her start date or the date the enrollment form is signed, whichever is later. In order to participate, an employee must submit a completed enrollment application to Human Resources within thirty-one (31) days of the hire date.
Unless a qualifying condition is met, enrollment in this plan cannot be changed during the calendar year in which the election is made.
The University has an open enrollment period each year. Current employees must re-enroll in this plan every year during open enrollment. If an application is received during open enrollment, then the plan will be effective on January 1 of the next calendar year.