Flexible Spending Accounts
Flexible spending accounts allow you to make the most of the money you need to spend on healthcare and other covered expenses. By setting aside a portion of your paycheck in an FSA, you lower your taxable income.
The money you set aside can be directed to bills you already plan to pay, such as your portion of insurance premiums, out-of-pocket healthcare expenses or dependent care.
Special Alert: Due to the COVID-19 outbreak, there are special parameters for Flex Spending use until June 29, 2020. Please review details in the Allegiance Flex Spending Account Usage document in BOX.
The university has four flexible spending account plans available, administered by Allegiance:
The Health FSA helps you pay eligible expenses that are not covered or fully reimbursed by your health, dental or vision coverage. This includes deductibles, co-insurance and co-payments, which can all be reimbursed or paid through your Health FSA. There is a $2,750 annual limit on what you can set aside in a Health FSA. Make a claim
The Dependent Care FSA can help you save on childcare costs. It is available when dependent care is necessary to allow both you and your partner to work or attend school full time. There is a $5,000 annual limit on what you can set aside in a Dependent Care FSA. Make a claim
The Mass Transit and Parking Expense FSA also lowers your taxable income by allowing you to withhold money for these commuter expenses pre-tax. You may set aside $270 per month for parking and $270 per month for transit expenses. Make a transit claim | Make a parking claim
You must enroll in FSAs annually during the open enrollment period. FSA arrangements do not carry over from year to year (barring certain exceptions). Money left unspent over and above $500 in FSAs may also be forfeited at the end of the plan year. Please refer to IRS guidelines for eligible expenses for your FSA and watch for annual messages from Human Resources to ensure that your funds are used before the end of each plan year.
Changes to Health FSAs and Dependent Care Plans
On May 12, 2020, the IRS released guidance (in the form of Notice 2020-29) to allow temporary changes to Section 125 cafeteria plans to assist with the response to the COVID-19 outbreak. The Notices provided employers with the option to make the following changes, and Pacific University has elected to adopt the changes.
Healthcare and Dependent Care FSA – You can revoke, increase, decrease or make a new election on a prospective basis without a qualiﬁed event.
- Revoke Election – You can reduce your election to an amount not less than contributions made or reimbursements received, whichever is greater.
- Increase Election – You can increase your election not to exceed the annual plan maximum allowed.
- Decrease Election - You can reduce your election to an amount not less than contributions made or reimbursements received, whichever is greater.
- New Election – You can make a new election not to exceed the annual plan maximum. New elections are on a go forward basis.
Mid-year changes can only be made through the November 30th the last payroll of the current plan year that ends December 2020.
- Setting Up Your Reimbursement Account and Mobile Device
- Health FSA Debit Card User Tips
- Over-the-Counter Expenses List (2020)
- Medical Flex Spending Worksheet
- Reimbursement Direct Deposit Enrollment