Flexible Spending Accounts (FSA)
Baylor employees can choose to elect into a Flexible Spending Account (FSA) for Healthcare and/or Dependent Care. An FSA is a tax-effective, money-saving option that will help you pay for qualified healthcare expenses that are not covered by your medical plan, and for dependent care services necessary to enable you to work.
Contribution Information
2022
- Healthcare FSA: Maximum contribution of $2,850 during 2022
- Dependent Care FSA: Maximum contribution of $5,000 (single or married filing jointly) OR $2,500 (each if married filing separately) during 2022
2023
- Healthcare FSA: Maximum contribution of $3,050 during 2023
- Dependent Care FSA: Maximum contribution of $5,000 (single or married filing jointly) OR $2,500 (each if married filing separately) during 2023
Limitation Information
Healthcare FSA
- Spouse Contributions: Each spouse (if eligible) may elect to make salary reduction contributions of up to $2,750. Please note that if both spouses have FSA accounts, they cannot submit for reimbursement for the same expenses.
- Separation from Employment: If an employee separates from employment with the University or are no longer eligible to participate, the employee can no longer incur expenses for reimbursement after the separation or ineligibility date. However, if services were received prior to the separation or ineligibility date, the employee may still file claims through December 31 of the year of eligibility loss. If an employee has funds remaining in their account upon separation, they may continue paying into this account through continuation of coverage; i.e., COBRA with after tax dollars so that the employee may incur expenses after the separation date.
Dependent Care FSA
- Spouse Contributions: If an employee's spouse participates in a Dependent Care Spending Account through another employer and you file a joint return, the total amount both spouses contribute cannot exceed $5,000. The employees are responsible for coordinating their contributions to a Dependent Care Spending Account with your spouse so that the $5,000 limit is not exceeded.
- Reimbursement Timing: An expense cannot be reimbursed until the service has been fully incurred. An employee may only be reimbursed up to the amount actually contributed to your Dependent Care Spending Account for the plan year less any prior reimbursements.
- Medical Leave: The Internal Revenue Code, section 129, does not allow participating in the Dependent Care FSA while on medical leave. DDC expenses incurred during a medical leave are not eligible for reimbursement. When an employee's Dependent Care status has changed as a result of medical leave, they may elect to change their election for the balance of the year.
- Separation from Employment: If an employee separates from employment with the University or are no longer eligible to participate, continuation of the FSA does not apply to Dependent Day Care.
Grace Period Information
If dollars are still available in your FSA after December 31, eligible claims still will be reimbursed as long as they have a date of service prior to March 15 of the following year (2 ½ month grace period). Employees have until April 15 to submit claims that were incurred in the previous year or the grace period. Funds remaining in your FSA account(s) after April 15 are forfeited.
