Due to the pandemic - you may adjust your contributions to your Dependent Care Flexible Spending Account. Learn more here.
FLEXIBLE SPENDING ACCOUNTS (FSA)
A Flexible Spending Account (FSA) is an account eligible employees use to put pre-tax money into throughout the year. You choose how much money to contribute to your FSA, within limits, and you choose what qualified expenses to spend your FSA funds on — an FSA is flexible that way. This account allows you to set aside pre-tax dollars to pay for qualified expenses. Our vendor is TASC, see their contact information below.
There are three types of accounts:
- Healthcare FSA
- Minimum $130 | Maximum: $2,850 (2023)
- Use for co-pays, dental services, prescriptions, glasses, over-the-counter medications (cold/sinus, for example), and more. See the IRS list of eligible expenses. Use with Triple Choice Plan.
- Limited Purpose FSA
- Minimum: $130 | Maximum: $2,850 (2023)
- Use for dental & vision only. Use with HDHP w/HSA plan.
- Daycare/Eldercare FSA
- Minimum: $260 | Maximum: $5,000 ($2,500 married & filing separately) (2023)
- Pay expenses for dependent care (not for healthcare expenses).
- Daycare, summer day camp, and preschool fees for children under 13 for whom you have custody.
- Spouse or another adult dependent physically or mentally incapable of caring for him/herself.
- Not required to be enrolled in a medical plan to have a Daycare/Eldercare FSA.
- Pays for the care of a dependent child or adult so that you can work.
- IRS regulations may require ADOA to reduce your contribution due to IRS non-discrimination test requirements. The Dependent Care FSA for Highly Compensated Employee contribution is limited to $1,600 in 2021 and $1,800 in 2022. A Highly Compensated Employee is defined by the IRS as having earned $125,000 or more in 2020 or $130,o00 in 2022.
- Contribution Deposit Dates - You contribute to this account each pay period. Typically, your contributions are deposited on the Friday of the pay week. At times, the schedule may change due to state and federal holidays. Funds are available within one business day of being deposited. You may manage your account on optumbank.com/arizona or via the OptumBank app.
Looking for Health Savings Account (HSA) information? Find it here.
HOW THE FSA WORKS
Step 1. Decide Your Amount for the Year
- You determine how much you want to set aside pre-tax for medical, dental and vision expenses up to the IRS limit for that year. | FSA Eligible Expenses Flyer
- Estimate your costs with this calculator.
- Consider Your Deductible - You can use the funds to pay for all or part of a deductible, up to the annual contribution limit shown above. You’ll have your deductible budgeted for the year at a tax-free rate.
- Use it or Lose It - The funds you set aside in a year can only be used for qualified expenses incurred during the calendar year 1/1 - 12/31. Funds do not carry over and are lost if not used.
Step 2. The Account is Fully Funded Upfront
- The full amount you choose for the year is deposited into your FSA account upfront.
- Your pre-tax payroll contributions are deposited to the FSA throughout the year, saving money on taxes.
Step 3. Use the Funds All Year
- Since the account is fully funded upfront, you can immediately begin to use the funds at the start of the plan year (or, for new hires, when your plan goes into effect) to pay for eligible medical expenses such as deductibles, doctor visits, prescription drugs, glasses and more.
- Pay at point of service - You will automatically receive a MasterCard debit card to have the convenience of paying right at the doctor’s office or pharmacy. See more below.
ENROLLMENT - EACH YEAR
- During New Hire Enrollment or Open Enrollment. You must re-enroll for the account(s) each year.
- Enrollment can be done on yes.az.gov
FSA MASTERCARD DEBIT CARD FROM TASC
The card has many benefits
- Your debit card will be pre-loaded with the entire amount of the deductions you selected for the plan year - the same card works for Healthcare and Dependent Care FSAs.
- This makes it much more convenient to use your FSA contributions.
- The TASC FSA MasterCard Debit Card is a limited-use benefit card that will allow you to directly pay the merchant or healthcare provider from your health FSA account.
- The card is accepted by healthcare and retail providers that accept MasterCard. Simply present your card for payment.
- The card's advantage is that you do not have to pay with cash or a personal credit card.
- The merchant will process the transaction; then the card company will then report the transaction to TASC.
Debit Card AUTOMATICALLY Sent
- You will be sent a new debit card automatically upon enrollment and may request additional cards for your dependents. The card is valid until the expiration on the front.
- The card will arrive in a plain white envelope for security reasons, so be sure to watch your mailbox.
SUMMARY PLAN DESCRIPTION | SPD
- The Summary Plan Description (SPD) is a detailed description of what the plan provides and how it operates. | TASC SPD 2023
- The Summary of Material Modifications (SMM) informs participants and beneficiaries of changes to the SPD during the plan year. | TASC SMM - 5/5/2021
TASC | 833-433-4301 | tasconline.com
University Faculty and Staff: Please see your HR website for your flexible spending account options.