Human Resources

Flexible Spending Accounts

Villanova University offers Flexible Spending Accounts (FSA) on a fiscal year basis. Open enrollment for this plan will run concurrently with the Medical open enrollment period. Under IRS rules, you must re-enroll every year in order to maintain your enrollment status.

The 2018 - 2019 plan year limit for the health care account is $2,650 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.

The Affordable Care Act that was passed as part of the health care reform initiative includes a new rule that requires a doctor’s prescription for the reimbursement of OTC medication. Due to this requirement, the Wage Works Health Care Card can no longer be used for OTC medication. Please take this into consideration as you calculate the amount that you will be contributing to the Health Care FSA.

The Child Care Subsidy Plan is an employer-funded Flexible Spending Account. For the 2018 - 2019 plan year, the plan provides a plan year benefit of up to $1,000 pre-tax dollars. Please note that if you enroll in the Child Care Subsidy Plan, the maximum plan-year Dependent Care contribution is $4,000.00, in accordance with IRS regulations on calendar year maximums.

If you need assistance or have questions, please contact Annette Lucidi at x9-4239.

Administered through Wage Works

Villanova offers two types of Flexible Spending Accounts — a Healthcare Flexible Spending Account and a Dependent Care Flexible Spending Account. These accounts allow you to set aside pre-tax dollars to pay for certain out-of-pocket healthcare or dependent care expenses.

How Flexible Spending Accounts Work:

  • 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 that can be used (at the point of sale) to pay for medical co-pays and eligible prescription drug expenses.

Please Note: When using the healthcare debit card, you will not be paying out of pocket, so there’s no need to fill out a claim form and wait for reimbursement.

Plan
 Annual Maximum Contribution
 Examples of Covered Expenses
Healthcare Flexible Spending Account
 $2,600
 Co-pays, deductibles, orthodontia
Dependent Care Flexible Spending Account $5,000 ($2,500 if married and filing separate tax returns) Day Car, nursery school, elder care expenses
Child Care Subsidy $1,000 Child care expenses for children up to the earlier of Age 6 or the start of kindergarten.

Visit www.wageworks.com for a complete list of covered expenses.

Note: The Child Care Subsidy Plan is an employer-funded pre-tax plan. The University provides a calendar year contribution of up to $1,000 pro-rated over each pay period, which can be used for qualifying childcare expenses for eligible tax dependent children up to the earlier of age 6 or the start of kindergarten. The $1,000 is contributed directly into the Dependent Care FSA and reduces the $5,000 maximum contribution.

Please remember that all FSA claims must be incurred within 2 1/2 months (by August 15th) 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. This is an IRS regulation known as the “Use it or Lose it” rule.

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.

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Helpful Links

WageWorks EZ Receipts Mobile Application

The EZ receipts application is available to submit claims and verify debit card transactions. In addition, you can upload receipts using the photo function on your smartphone as see in this Wageworks demo video.

Download today onto your iPhone, Blackberry or Android smartphone.