Flexible Spending Account (FSA) Update
A Flexible Spending Account (FSA) takes advantage of income tax laws that allow you to pay your share of the cost of your benefits on a tax-free basis. Through a Flexible Spending Account, you “redirect” part of your pay before federal income or Social Security taxes are computed. You are eligible to participate if you are otherwise eligible for health benefits with the University.
How Flexible Accounts Work?
Flexible Spending Accounts offer two ways to pay certain expenses with tax-free dollars.
- Health Care Reimbursement Account
- Dependent Care Reimbursement Account
The IRS just issued a notice that the maximum annual election for the healthcare FSA will increase to $2,650 (from $2,600) effective January 1, 2018.
What Does This Mean To You?
If you have already submitted your health care flexible spending account enrollment elections for 2018 through the IVR, you can go back into the same system and re-elect your health care FSA to the new maximum amount up until the end of the day on November 15, 2017. If you elected less than the maximum and are satisfied with that election you do not have to do anything.
To learn more about FSA, please visit https://uhr.umd.edu/benefits/flexible-spending/