(January 1, 2020 through December 31, 2020)
The Pace University Reimbursement Account programs provide you with the opportunity to set aside, on a pre-tax basis, a pre-determined dollar amount to reimburse yourself for eligible expenses.
There are two types of Reimbursement Accounts:
- Flexible Spending Accounts for health care and/or dependent daycare expenses.
- Commuter Reimbursement Accounts for mass transit and/or parking expenses.
Flexible Spending Accounts (FSA)
PayFlex is the administrator for Health and Child/ Dependent Care FSA. Some enhancements include online claims submission, personalized customer service and a fully integrated website offering, accessed through the Payflex website.
The Health Care FSA will reimburse you with "tax-free dollars" savings for unreimbursed medical and dental expenses (i.e., medical co-payments, prescription co-payments) and you may contribute up to a maximum of $2,750 for the plan year from January 1, 2020 through December 31, 2020.
Through the Child and Dependent Care FSA you can set aside savings with the same ‘tax-free’ advantage to reimburse yourself for day care expenses incurred for your dependent children under age 13 or other qualified dependents. You can contribute a maximum of $5,000 to the Child and Dependent Care FSA ($2,500 if you and your spouse enroll in separate FSAs) for the plan year from January 1, 2020 through December 31, 2020.
Once an FSA election is made, it can only be changed during the plan year (outside of the annual Open Enrollment period) within 31 days of a qualifying change in family status. If no such qualifying event occurs, the election must remain intact through the end of the plan year, currently December 31st.
You may contact PayFlex via telephone at 800-284-4885. PayFlex will be able to identify you by your unique University ID number (U#). (This is not the same number as your medical plan ID number, which may also begin with the letter U.)
Health Care Flexible Spending Account
This account will reimburse you with "tax-free dollars" for unreimbursed medical and dental expenses (i.e. medical co-payments, prescription co-payments) incurred by you, your spouse or your dependent. Note: Participants enrolled in the Consumer Core HDHP/HSA plan are not eligible to enroll in the Health Care Flexible Spending Account.
You may elect to contribute up to a maximum of $2,750 to the Health Care FSA for the plan year from January 1, 2020 through December 31, 2020. The minimum annual contribution is $200.
Examples of Eligible Medical and Dental Expenses:
- Copayments, deductibles and coinsurance
- Expenses that exceed 300% of Medicare guidelines (out-of-network for the medical plan)
- Vision or hearing expenses not covered by the medical/vision plans
- Unreimbursed expenses for mental health care
- Unreimbursed chiropractic expenses
- Over the counter medicines and drugs, for which you have a prescription
- Any other expense that would qualify as a medical expense deduction for federal income tax purposes
Examples of Expenses that do NOT Qualify for Reimbursement:
- Health or Dental plan premiums (including COBRA)
- Health club dues
- Cosmetic surgery that is not medically necessary
- Long-Term Care insurance premiums
- Expenses for domestic partner or children of domestic partner
- Any other expense that would NOT qualify as a medical expense deduction for federal income tax purposes
You can obtain a complete list of eligible expenses in IRS Publication 502-Medical and Dental Expenses. This publication is available at your local IRS office or on the IRS website or by accessing the PayFlex website (under Individuals > Explore Common Eligible Health Care Expenses).
Child and Dependent Care Flexible Spending Account
This account will reimburse you with "tax-free dollars" for day care expenses incurred for your dependent child under age 13 while you and your spouse (if married) are at work. Day care expenses incurred for dependents age 13 or over are considered eligible only if the dependent is physically or mentally disabled, spends at least eight hours a day in your home and depends on you for at least half of his or her support. To be eligible, the child, spouse or parent must be a dependent you claim on your federal tax return.
You may elect to contribute up to a maximum of $5,000 to the Dependent Care FSA for the plan year from January 1, 2020 through December 31, 2020. The maximum is $2,500 if you and your spouse each establish a Dependent and Child Care flexible spending account. The minimum annual contribution is $200.
Examples of Eligible Dependent Care Expenses:
- Payments for dependent care services provided in the home. The services cannot be provided by someone you also claim as a dependent, or by your child under age 19, whether or not a dependent.
- Pre-school or nursery school tuition (below first grade)
- Day camp
- After-school programs
- Child care centers
Examples of Dependent Care Expenses that are NOT Eligible:
- Education expenses for the first grade or higher
- Payments to a care giver while at home sick from work
- Round-the-clock nursing home care
- Overnight camp
- Transportation to and from a care site
If you use the services of a dependent care center that provides care for at least six individuals, the center must be in compliance with state and local laws.
You can obtain a complete list of eligible expenses in IRS Publication 503-Child and Dependent Care Expenses. This publication is available at your local IRS office or on the IRS website or by accessing the PayFlex website (under Individuals > Explore Common Eligible Dependent Care Expenses).
An employee who participates in the Child and Dependent Care FSA and separates from the University prior to the end of the plan year (which is currently December 31st) must incur eligible child care expenses by his/her last day of work. Claims for reimbursement must be submitted to PayFlex no later than March 30th of the following calendar year.