Flexible Spending Account
A Flexible Spending account can be used for both health expenses and dependent care expenses that are incurred during the plan year (July 1‑June 30).
Employees may allocate a portion of monthly earnings, pre-tax, to be used for health expenses and dependent care expenses, which can result in substantial tax savings. This amount is locked in for the plan year.
The maximum you may set aside for health expenses is $2,700 per year.
The maximum you may set aside for dependent care is $5,000 per year.
USU Eastern participates in the PEHP FLEX$. There are two different FLEX$ accounts – one for medical expenses and another to help with dependent childcare costs – and each has important rules to keep in mind when using the benefit.
NOTE: If you are in the HDHP and have a Health Savings Account you are not eligible for medical flex spending, but you are eligible for dependent care.
Paying for medical expenses through the Flex Spending Plan can save you as much as 25%-28% in taxes on each dollar spent for your share of insurance deductibles, co-pays, or items not covered by insurance. Also, the Dependent Care Flexible Spending Account may save you more in taxes than the day-care tax credit (filed with your federal income tax return).
FLEX reimburses you for eligible expenses incurred July 1st 2018 - June 30th 2019 (with a grace period that extends to September 15th). All claims must be submitted for the prior plan year by December 15.
This is a use or lose benefit.