Flexible Spending Account (FSA)
Update March 2020: Penn State HR has authorized HealthEquity, the University's spending accounts vendor, to extend the deadline to submit for reimbursement or to substantiate purchases made using 2019 Flexible Spending Account (FSA) funds to Monday, June 1, 2020. Previously, the deadline to submit these receipts was Tuesday, March 31; however, HR authorized the extension of this deadline to accommodate employees who may need more time due to the challenging circumstances we are currently facing.
For more information from HealthEquity regarding the CARES Act changes that impact employee HSAs and FSAs, including member education and FAQ, please visit their CARES Act microsite.
The money in your FSA can be spent on qualified medical expenses or you and your family. The full listing of eligible expenses can be found on the HealthEquity website at: https://learn.healthequity.com/qme.
HEALTH CARE FSA:
- You can use your remaining 2019 FSA funds to pay expenses incurrent from January 1, 2019 - December 31, 2019.
- You can submit those claims until 03/31/2020. If you elected an FSA for 2020, any remaining funds over $500 will be forfeited after this date. If you did not enroll in the FSA for 2020, remaining 2019 funds will be forfeited after the 03/31/2020 deadline.
DEPENDENT CARE FSA:
- You can use your 2019 DCRA funds to pay for expenses incurred from January 1, 2019 - December 31, 2019.
- You can submit those claims until 03/31/2020. Any money you donot spend by this date will be forfeited.
You can submit claims by visiting your HealthEquity member portal; My HealthEquity. While logged in to your account, you can also view your current balance and plan information. If you have any questions, please contact HealthEquity 24/7 at 866-346-5800.
Health Care FSA
If you elect the PPO Plan, or do not elect either Penn State health plan, you have the option to enroll in a health care FSA, managed through My HealthEquity. Contributions made to the health care FSA are tax free. Funds contributed must be used in the same plan year for eligible health care expenses.
Elections to participate in the health care FSA must be made each year during the annual benefits open enrollment period. Elections cannot be changed unless there is a qualifying life event, such as marriage, divorce, birth of a child, adoption, etc. If you experience a qualifying life event that allows an FSA change, please submit your change request via Workday within 31 days of the date of the event.
- Funds may be used to pay for out-of-pocket medical, prescription, dental, and vision care expenses for the enrolled employee and their eligible dependents.
- Unused funds of up to $500 in a healthcare FSA may be carried over to the following plan year provided you re-enroll in the healthcare FSA benefit for the following year.
- Any health care FSA funds in excess of $500, at the end of any plan year will be forfeited.
- The health care FSA acts like an up-front loan; entire elected amount is available to the start of the new plan year. Penn State’s plan year runs from January 1 through December 31.
- The period for submitting claims incurred during the previous benefit plan year extends to March 31 of the current benefit plan year (e.g., expenses incurred in 2019 can be submitted through March 31, 2020).
- If you terminate University employment, your FSA elections will be cancelled. Reimbursements will be limited to expenses incurred up to and including your termination date. You will have 90 days from your termination date to submit requests from the period of your participation.
- In order to view your spouse and/or over age 18 children’s claims details on the HealthEquity website and mobile app, you are required by HealthEquity to complete a HIPAA form. After the form is on file with HealthEquity, all claims details will populate in your account. If you have any questions regarding their policy, please contact HealthEquity at 866-346-5800.
The health care FSA contribution maximum for calendar year 2020 is $2,700.00. The IRS allows for spouses to each elect the contribution maximum, provided they are not enrolled in a qualified high deductible plan (like Penn State’s PPO Savings Plan).
If you have a remaining balance of $500 or less in your health care FSA by the end of the current plan year, Penn State has a carryover provision that allows you to carry up to a maximum of $500 into the next plan year, however, you MUST re-enroll during Benefits Open Enrollment for the following benefit year in order to recieve any carry-over funds. The carry over provision WILL NOT apply if you choose to enroll in the PPO Savings Plan with HSA for the next plan year.
If two Penn State employees are married and have elected FAMILY coverage under the PPO Savings Plan with an HSA, a Health Care Flexible Spending Account (FSA) cannot be opened under either employee's name. In addition, if you are the Penn State employee and your spouse is employed elsewhere and enrolled in a high-deductible health plan with an HSA, a Health Care Flexible Spending Account cannot be opened by either employee. The IRS does not permit use of a health care FSA when enrolled in an HSA. However, the Dependent Care FSA is available to either employee up to the IRS limits.
Dependent Care FSA
You have the option to enroll in a dependent care FSA, managed through My HealthEquity, regardless of which Penn State health plan you participate in, or whether you participate in a Penn State health plan at all. Contributions made to a dependent care FSA are taken before federal taxes from your paycheck. Funds contributed must be used within the same plan year for eligible dependent care expenses.
Note: Dependent FSA's can be used for work-related daycare, nursery school, elder care for dependent children up to the age of 13. They are NOT for a dependents’ medical expenses.
Elections to participate in the dependent care FSA must be made each year during the annual benefits open enrollment period. Elections cannot be changed unless there is a qualifying life event, such as marriage, divorce, birth of a child, adoption, change in day care cost, etc. If you experience a qualifying life event that allows an FSA change, please submit your change request via Workday within 31 days of the date of the event.
- Allows employees to set aside pre-tax funds to reimburse work-related, day care expenses for eligible dependents.
- Day care expenses include child day care and elder care.
- Funds must be in the dependent care FSA before they may be used.
- Money contributed to the dependent care FSA is subject to Pennsylvania state income tax.
The dependent care FSA contribution maximum for calendar year 2020 is $5,000.00 per household. The IRS does not allow for spouses to each elect the contribution maximum, as the maximum is only allowed per household.
Changes to your Account
Updates may be made to either flexible spending account when you experience a Qualifying Life Event change such as: marriage, birth, adoption, etc. To do so, please visit Workday via the WorkLion portal.