Flexible Spending Accounts
Flexible Spending Accounts (FSA) are a great way to save on predictable health, dental, vision, and/or dependent care expenses. These expenses can be for you or any member of your family regardless of whether or not they are covered by an Ivy Tech insurance plan.
FSAs are funded with money you contribute on a pre-tax basis. Ivy Tech has teamed up with Chard Snyder to administer our FSAs.
Dependent Care Account - Annual contribution limit is $5,000
A Dependent Care Account allows you to set aside pre-tax dollars to pay for childcare expenses while you (or a spouse) work or attend school full time. The dependent must be a child under age 13 or a disabled dependent who needs care. The childcare provider does not have to be licensed, but they must be claiming the earnings for tax purposes.
The General Purpose FSA and the Limited FSA will allow a $550 carry-over into the next plan year.
General Purpose FSA - Annual contribution limit is $2,700 (2021 Annual Limit is $2,750)
For employees not participating in an HSA, the College offers a General FSA for your health, dental, and vision expenses. You are eligible for this if you are enrolled in the Standard Plan, have no medical coverage, or are enrolled in other coverage without an HSA.
Limited Purpose FSA - Annual contribution limit is $2,700 (2021 Annual Limit is $2,750)
A Limited Purpose FSA is available for employees participating in the Choice Plan (or another HSA plan). This account is for dental and vision expenses only because your medical expenses can be reimbursed out of your HSA. These funds are limited to you or any member of your family who is covered by a High Deductible Health Plan such as our Choice Plan
Things to Consider Before Enrolling in an FSA
Because FSAs are governed by IRS code Section 125, There are specific rules and regulations that affect the way they operate:
- Elections must be made in advance. You must decide before the beginning of the plan year how much you want to contribute.
- You can only change your election under limited circumstances. Once you have made your election for the year, you can change it only if you have a Qualifying Life Event.
- You need to budget carefully. The IRS mandates that any money left in your account at the end of the plan year cannot be recovered. However, you will be allowed to carry-over up to $500 into the next plan year. Additionally, you have runout period at the end of the plan year to get reimbursed for any expenses incurred during the plan year.
- Not all expenses may be reimbursed by the FSA. The IRS sets the guidelines on what is considered an eligible expense. See IRS Publication 502.