What is a Flexible Spending Account?
If you paid for any out of pocket medical or dependent care expenses this year and are not currently enrolled in the University’s Flexible Spending Account plan, you are paying more in taxes than you would have if you were enrolled in the program. A flexible spending account allows you to take money from your compensation and place it into an account for medical and dependent care expenses. These funds are not taxed, thereby potentially saving you hundreds of dollars. The money put aside in the account is then used by you to pay eligible medical and dependent care expenses. These payments can be made via the debit card provided or you can make the payments and request reimbursement from the funds in your account.
How Do I enroll!
Enrollment is online at https://stateoftn.payflexdirect.com. Instructions are provided on the “ Your Guide to Online Enrollment” weblink. If you are enrolling for the first time when you click on Register Now you will be asked to enter your Member ID (this is our social security number) and your 5 digit home zip code. Enrollment must take place during October 1 through October 31 and you must re-enroll each calendar year.
- During the annual enrollment period, if you have a balance in your medical FSA on December 31 and you choose to enroll in a CDHP for the following year, you cannot open a health saving account(HSA) until April 1 of the following year. Any claims against your HSA must be for April 1 or later, as well.
- You may carry over up to $500 from your FSA or Limited Purpose FSA from 2018 into 2019. Any funds greater than $500 remaining in your account will be forfeited. You have until April 30 of the following year to file FSA or L-FSA claims for the previous year. Any carried over funds will be added to your election for 2019 and these funds will be tapped before your 2019 funds are used.
The PayFlex debit card will not work at childcare facilities. On dependent care claims, you will need to file a paper claim with PayFlex for reimbursement. You can set up an PayFlex’s state-specific website your bank account information so that you can issue a payment directly from PayFlex to your dependents care provider. A PayFlex representative will assist you with this process. You can also make a payment via your own personal check, keep your provider’s receipt for tax purposes and then deduct the funds from your dependent care FSA to go back into your bank account. Please keep copies of all receipts for IRS tax purposes or in case of an audit.