Flexible Spending Plans
Flexible Spending Account Changes – April 2021
A federal COVID relief package, the Consolidated Appropriations Act, included assistance for faculty and staff members that had a forfeiture of unused 2020 Health Care and/or Dependent Care Flexible Spending Account (FSA) funds due to the pandemic. ÃÛÌÒÉçÇø has chosen to adopt these provisions and BASIC, the FSA administrator has implemented them for 2021 and 2022 calendar years. Relief includes full carryover of unused 2020 Health Care and Dependent Care FSA funds to 2021 and again from 2021 to 2022. Also included is flexibility in making midyear election changes including enrolling, stopping and changing 2021 FSA contributions without a qualifying life event. Also, the Dependent Care FSA will accept reimbursements for dependent children up to age 14, instead of age 13.
More details about the carryover, how to access your funds, and how to make a mid-year election are available on the flier: Important Information Regarding Your Health care and Dependent Care Flexible Spending Accounts.
Complete the FSA Enrollment Form to enroll or make mid-year election changes.
Employee Handbook Section 13
ÃÛÌÒÉçÇø Michigan University offers employees two plans designed to help you meet health care and dependent care expenses using tax-free dollars: a medical reimbursement flexible spending account and a dependent care flexible spending account. You are given the opportunity to enroll in these plans upon hire, and enrollment opportunities are also provided annually. Information and enrollment materials will be provided to you via Benefits Enrollment. Contact Human Resources for further details or to enroll at other times.
Health care flexible spending account
This optional plan allows you to set aside a pre-determined amount of money from your gross pay (before taxes are charged) to cover the cost of certain medical expenses that are not covered by other insurance. Example of such expenses include co-pays and deductibles for medical, dental, orthodontia, prescription and vision services, as well as medical expenses beyond the limits of your coverage.
The dollars deducted from your gross pay are set aside in a special account and used to pay for known expenses as they occur. You save paying federal and most state taxes as well as Social Security taxes on the amount you set aside.
Detailed information is available in Human Resources.
Employees should be aware that according to IRS provisions, funds left in the account at year-end are not refundable to the employee
Dependent care flexible spending account
This optional plan allows you to set aside a pre-determined amount of money from your gross pay (before taxes are charged). The dollars are set aside in an account from which you can be reimbursed for payments you make to dependent care providers. No income taxes are charged on the money when deducted from your pay, when deposited into your account, or when paid to you as reimbursement. You save paying federal and most state taxes as well as Social Security taxes on the amount you set aside.
You can use this plan for expenses paid to an eligible care provider of your eligible dependents during your working hours. Eligible dependents are children under age 13 (whom you claim as exemptions for federal tax purposes) and your disabled spouse, parent, or child age 13 or older whom you claim as a dependent for federal tax purposes.
Detailed information is available in Human Resources.
Employees should be aware that according to IRS provisions, funds left in the account at year-end are not refundable to the employee.