Flexible Spending Account Summary
The Flexible Spending Account (FSA) is available for all Faculty, Professional Support Staff, Police, Pew Campus Security, Maintenance, Grounds and Service Staff and Executive, Administrative and Professional staff members with full time appointments (one half-time or more) who are paid on the basis of a fiscal or academic year are eligible to participate in the plan. Visiting Faculty and Adjunct Administrative and Professional staff are not eligible to participate in the the Flexible Spending Account (FSA).
The Flexible Spending Account (FSA) option makes your earnings go further by allowing you to set aside pre-tax earnings to pay for eligible health and dependent care expenses.
Your pre-tax dollars are deposited to your FSA(s) and are not considered taxable income. This saves you from paying Social Security, federal, state, or local income taxes on that portion of your income. A Flexible Spending Account, be it dependent and/or health, must be set annually. Unused spending account balances at the end of the calendar year will not carry over and will be forfeited. You have until March 15 of each year to incur Health Spending Account claims for the prior calendar year.
The University offers two types of accounts; a Health Care FSA and a Dependent Care FSA; you have the option of selecting one or both of them.
The maximum annual amount you may deposit in your Flexible Health Care Spending Account is $2,500.
Any item allowed as a medical deduction on your income tax return is eligible for reimbursement under the Flexible Health Care Spending Account as long as you do not also deduct those expenses on your income tax return.
Dependent Care Accounts
Your Dependent Care Flexible Spending Account may be used to pay for certain expenses connected with taking care of your eligible dependents, as defined by the Internal Revenue Service for tax purposes, provided the care is necessary for you and your spouse to work. Working couples as well as single persons may use the account for any of the following dependent care expenses, as long as they are incurred during working hours:
- Nursery schools or pre-schools used in place of day care.
- Licensed day care centers.
- Private baby-sitters, either in their home or your home.
- Custodial care for dependent adults.
You cannot be reimbursed for dependent care payments you make to your spouse, to your child who is under the age of 19, or to any person you claim as a dependent on your income tax return. You are responsible for obtaining the taxpayer ID number of the care provider. This number is necessary to validate costs in the event of an audit.
There are two important limitations on the amount you may deposit for dependent care expenses. If you are married, your dependent care reimbursements cannot exceed the earned income of the lower-paid spouse, unless the spouse is a full-time student or is disabled. Also, you are limited in the amount you may deposit to your dependent care account to $5,000 annually.
In some circumstances you may realize greater tax savings if you use the federal child care tax credit instead of the Flexible Spending Account. Generally, persons with family incomes of $24,000 or more each year benefit more from using a Flexible Spending Account. However, GVSU cannot provide you with tax advice. You should seek the guidance of a professional tax consultant.
Requesting Reimbursements From Your Account
To receive reimbursements for health care expenses, you must submit the expenses to the appropriate insurance carriers before being reimbursed through your Flexible Spending Account. Simply present a copy of the explanation of benefits or receipt received for a medical, dental or vision claim along with a Request for Reimbursement Form.
To receive reimbursement for dependent care expenses, you must submit a Childcare Provider Invoice and a Request for Reimbursement Form. You may request these forms by printing them from the Health and Wellness web site at www.gvsu.edu/healthwellness. Reimbursement claims can be uploaded to Infinisource directly if you have created an online account or requests can also be mailed to: 15 E. Washington St. PO Box 488 Coldwater, MI 49036-0488 or faxed to 800.379.5670 or emailed to firstname.lastname@example.org
If you mail your claim, do not fax it. Allow two business days before checking the website or calling for the status of faxed claims.
If you are looking for more information about Grand Valley's Flexible Spending plan or would like to look at the plan document visit our Benefit Information Center.