Important Information About
Flexible Spending Accounts
Flexible Spending Accounts are provided to the State by ConnectYourCare of Hunt Valley, Maryland. There are two types of flexible spending accounts: Health Care Spending Account and the Dependent Care Spending Account. While other State benefits roll over from one benefits period to another if the employee takes no action, Flexible Spending Accounts will not roll over into another benefits period. An employee must take positive action to renew a Flexible Spending Account for it to be active for the 2014 Plan Year. An employee already enrolled in an FSA for the current period must utilize the IVR system to update spending account information by October 16, 2013.
Spending account maximums have been returned to normal for the new plan year. Specifically, employees will be able to contribute a maximum of $2,500 to the Health Care Spending Account and/or $5,000 to the Dependent Care Spending Account. Spending account deductions should be based upon 24 pay periods. Employees wanting to contribute the maximum to each account should apply the following:
Health Care Account: contribute $104.16 per pay
Maximum = $2,500
24 pays x $104.16 per pay = $2,499.84
Dependent Care Account: contribute $208.33 per pay
Maximum = $5,000
24 pays x $208.33 per pay = $4,999.92
Grace Period and Claims Submission Deadline: You have until March 15, 2015 to incur expenses for your Healthcare FSA. You have until December 31, 2014 to incur eligible expenses for your Dependent Day Care FSA.
For both the Health Care and Dependent Day Care Spending accounts, employees have until April 15, 2015 to submit claims for eligible expenses. Remember, even though you have until April 15, 2015 to submit claims, the service dates must be on or before the dates listed above.
Amounts not claimed by the April 15, 2015 due date, are forfeited to the State (in other words, use it or lose it).
There will be a correction period from October 21-31, 2013 that will allow employees to correct errors made during open enrollment.
Claim forms for flexible spending accounts are available on the Human Resources Department Website at www.umbc.edu/hr/forms.