SPENDING ACCOUNTS
Villanova University offers three spending accounts—Flexible Spending Account, Health Savings Account and the Limited Purpose Flexible Spending Account—to help our employees plan and pay for their medical and dependent care expenses with pre-tax dollars.
Features of the spending accounts include:
- Each year you decide how much to set aside for healthcare and/or dependent care expenses.
- Your contributions are deducted from your paycheck on a before-tax basis in equal installments throughout the plan year (June 1 through May 31).
- As you incur healthcare or dependent care expenses throughout the year, submit a claim form for reimbursement. Your claim will be processed and you will be reimbursed from your account. Use the convenient checklist to make sure you have everything you need to submit your claims.
- You will also receive a healthcare debit card, administered through WageWorks, that can be used (at the point of sale) to pay for medical co-pays and eligible prescription drug expenses. When using the healthcare debit card, you will not be paying out of pocket, so there is no need to fill out a claim form and wait for reimbursement.
FLEXIBLE SPENDING ACCOUNT
The Flexible Spending Account (FSA) is offered on a fiscal year basis with enrollment running concurrently with medical open enrollment. The Childcare Subsidy Plan is also funded through this FSA. Under IRS rules, you must re-enroll every year in order to maintain your enrollment status.
Please note: All FSA claims must be incurred within two and a half months (August 15) of the end of the FSA plan year. If you do not have enough eligible expenses during the FSA plan year, you will lose this money per IRS guidelines.
Contribution Limits
| Plan | Annual Max. Contribution | Covered Expenses Examples |
|---|---|---|
| Healthcare FSA | $3,200 | Co-Pays, deductibles, orthodontia |
| Dependent Care FSA | $5,000 ($2,500 if marrried and filing separately) | Daycare, eldercare |
| Childcare Subsidy | $1,000 | Childcare expenses up to the earlier of age 6 or start of kindergarten |
The 2023-2024 plan year limit for the health care account is $3,050 and dependent care account is $5,000. In addition, a grace period has been added to the health care account that will provide employees with an additional 2 1/2 months to incur claims. Employees will be able to incur FSA claims until August 15 for the previous plan year and submit claims up until October 31 for reimbursement. The minimum amount which may be designated in either account is $200.
Please note that if you enroll in the Childcare Subsidy Plan, the maximum plan-year Dependent Care contribution is $4,000.00, in accordance with IRS regulations on calendar year maximums. For the 2024-2025 plan year, the plan provides a plan year benefit of up to $1,000 pre-tax dollars for the Childcare Subsidy.
HEALTH SAVINGS ACCOUNT
The Health Savings Account (HSA) is available only if you select the Consumer Driven Health Plan. An HSA provides you with flexibility in how you pay for medical services today and in the future. The plan is administered by WageWorks.
- Tax Advantages: Your contributions to your HSA come out of your paycheck before taxes are withheld, so every dollar that goes toward your HSA reduces your taxable income. Participants can also make contributions to the HSA with after-tax dollars. (Because this is a tax-favored account, there are IRS limits on annual contributions; see chart below for details.)
- Use It Today: Pay for regular health care expenses, including deductibles, coinsurance, copayments, and prescription drugs, with an easy-to-use debit card.
- Save for Tomorrow: If you save more money than you spend on health care expenses in the plan year, you can use that money in the future. Any money remaining in this account at the end of the plan year rolls over into the next year—and, even if you leave Villanova, the money remains yours.
- Invest for Your Future…Tax-Free: Once the balance in your HSA reaches $1,000, your funds will be automatically directed into the investment you select—helping you build savings for your future. When used to pay for qualified medical expenses, distributions from your HSA are tax-free.
- Catch-up Contributions: Employees 55 years of age or older can contribute additional dollars to their HSA. See the chart below for details.
Annual Calendar Year Maximum Contribution
2023
| Coverage | Employee Contribution | Villanova Contribution | Total |
|---|---|---|---|
| Individual | $3,250 | $600 | $3,850 |
| Family | $6,550 | $1,200 | $7,750 |
2024
| Coverage | Employee Contribution | Villanova Contribution | Total |
|---|---|---|---|
| Individual | $3,550 | $600 | $4,150 |
| Family | $7,100 | $1,200 | $8,300 |
*For illustrative purposes, the chart assumes that an individual did not participate in the annual NOVAfit! Health Screening Campaign. If you participated, or submitted a physician affidavit form, HSA contributions could increase to $750 individual and $1,425 family. Please note that this will reduce the amount of employee contributions accordingly. Please review the HSA Frequently Asked Questions.
LIMITED PURPOSE FLEXIBLE SPENDING ACCOUNT
According to federal regulations, HSA participants are not eligible to participate in a regular Health Care Flexible Spending Account (FSA). However, HSA participants can participate in the Limited-Purpose FSA, which provides a tax-free way to save and pay for dental and vision expenses not covered by your health plan. All other Health Care FSA rules and features apply to the Limited-Purpose FSA—same maximum, same use-it- or-lose-it rule, same claim-filing deadline, and if you enroll, you will receive a debit card to pay for eligible dental and vision expenses. If you elect an HSA, you will receive one combined debit card.