The Health Care Flexible Spending Account (FSA) and Limited Purpose FSA allow participants to pay certain out-of-pocket expenses with tax-free dollars. Since these are spending accounts, the money is intended to be spent. This article is a reminder for participants to use their FSA money and to substantiate claims timely. Remember, eligible expenses include:
•Medical (post-deductible only for the Limited Purpose FSA)
Eligible expenses must be incurred by December 31, 2020. These expenses must be submitted and substantiated by March 31, 2021.
How to Pay for Eligible Expenses
Once eligible expenses have been incurred, determine how to pay for them. Until December 31, 2020, in most situations, the payment card from the FSA administrator, ConnectYourCare (CYC) will work at the point of sale or service. Here are the options to submit FSA claims manually and/or substantiate claims after the payment card has been used:
•Mobile App Flyer: Use your mobile device camera to submit claims through CYC’s mobile app.
•CYC Portal: Login to your CYC account to submit claims online.
•FSA Reimbursement Claim Form: Download a claim form and submit to CYC via fax or mail.
Provide Information Timely to Substantiate Claims
For efficient processing, include appropriate IRS required supporting documentation with your claim(s) submission by March 31, 2020. CYC will contact participants directly when additional information is needed.
Review your account on the CYC Portal to see if you have claims to substantiate.
Failure to provide documentation to CYC when requested may require repayment by the employee. Repayment is done by deducting money from the employee’s paycheck on an after-tax basis. Claims should be substantiated by December 31, 2020 to avoid repayment.
Health Care FSA Carry Over Reminder
Up to $550 of unused funds in a Health Care or Limited Purpose FSA will carry over into the following year (even if you do not enroll in the FSA for the following year). You will have access to your carryover funds on/around April 15, 2021.
For questions about your FSA including eligible expenses, claims and/or your payment card, contact CYC at 1-833-881-8158 or firstname.lastname@example.org.
For general information review UW System Employee Benefits website.
Source: UW System Human Resources