Flexible Spending Accounts - 2018

Flexible Spending Account Summary Plan Document

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 60 days of the date of the event.

Features:

  • 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.
  • 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 health care FSA contribution maximum for calendar year 2018 is $2,600.00. 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, regardless of whether you choose to re-enroll in a health care FSA. 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 a family health plan under the PPO Savings Plan with HSA, a health care FSA cannot be opened under either employee. The IRS does not permit use of a health care FSA when enrolled in an HSA. The dependent care FSA, however, is available to either employee, regardless of health plan participation.

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.

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 60 days of the date of the event.

Features:

  • 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 2018 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.