Flexible Spending Accounts
Health FSA and Dependent Day Care FSA
The University of Utah offers a Flexible Spending Account (FSA) program (also known as a Section 125 Plan) for eligible medical expenses and/or dependent day care expenses.
Health FSA - Payment of eligible medical expenses incurred by the employee and employee’s spouse or dependent children (in some situations expenses incurred by the employee’s domestic partner may be eligible; contact your tax advisor or HealthEquity for information).
Dependent Day Care FSA - Payment of eligible dependent day care expenses for your eligible dependents (see below for a definition of eligible dependents.)
Plan Highlights:
- The University's Plan Year runs from July 1 through the following June 30.
- The minimum election is $5.00 per pay period per account and the maximum is set by the IRS.
- Participants in the Health FSA, receive two debit Visa® cards for use at eligible pharmacies and health care facilities.
- Funds may only be used for eligible expenses incurred after the date participation begins and before the end of the grace period (September 15 following the end of the Plan Year) or the date participation ends, whichever occurs first, regardless of when the expenses are billed or paid.
- Amounts not paid out or reimbursed by December 31 following the end of the Plan Year are forfeited
Enroll or Change Enrollment Through UBenefits
- Initial Enrollment Period – Newly eligible employees may enroll during their first 90 days following date of hire, but no later than the last day of the Plan Year. Participation begins effective on the date of hire. The annual amount will be divided by the number of pay periods remaining in the Plan Year and an equal portion will be taken out each paycheck through pre-tax payroll deductions.
- Open Enrollment – Enroll during Open Enrollment each year (held in May). Select the annual amount to be withheld. An equal portion will be taken out of each paycheck in the Plan Year through pre-tax payroll deductions. Elections do not roll over from year to year; to continue participation, employees must make new elections during Open Enrollment each year.
- Status Change Event – Employees may enroll, change or cancel an election if they experience a status change event during the Plan Year. Changes must be requested within 90 days of the date of the event or before June 30 (the end of the Plan Year). See the Status Change Events page for additional information.
To be eligible, expenses must not be paid, reimbursed, or reimbursable from any other source. Expenses must be incurred during the Plan Year (or subsequent Grace Period) while participating in the Plan. Expenses are incurred when the service is provided, not when billed or paid.
Eligible Medical Expenses:
Eligible medical expenses are those incurred for the diagnosis, cure, mitigation, treatment, or prevention
of disease or to affect any structure or function of the body. See HealthEquity’s website for a list of
eligible expenses.
Eligible Dependent Care Expenses:
Expenses are those incurred for the care of a Qualifying Dependent (defined below), which are necessary to allow
you and your spouse, if any, to work or attend school. The care must be provided by someone other than your
spouse or one of your dependents.
A Qualified Dependent is:
- Your child or children age 12 or younger;
- Your spouse who is physically or mentally incapable of caring for himself or herself and resides with you for more than one-half of the calendar year; or
- Your other dependent (e.g., a parent or child age 13 or older), who is physically or mentally
incapable of caring for himself or herself, resides with you for more than one-half of the calendar
year, and is someone you could claim as an exemption on your taxes.