Flexible Spending Accounts
The FSA is a simple way to set aside tax-free money for eligible medical and/or dependent care expenses. Participate by enrolling in the Medical Care Assistance Plan (MCAP) and/or the Dependent Care Assistance Plan (DCAP). Your FSA money will be automatically deducted from your pay, before taxes, and deposited into an account, with a variety of ways to access your funds when you have eligible medical or dependent care expenses.
When can I enroll?
You are enrolled in this plan from July 1 – June 30, and you must re-enroll each year during Benefit Choice to participate. Your enrollment cannot be changed or revoked during the plan year unless you experience an applicable Qualifying Event. Your FSA plan is administered by ConnectYourCare (CYC).
When can I make changes?
Am I eligible?
To participate in either the Medical Care Assistance Plan (MCAP) or the Dependent Care Assistance Plan (DCAP), you must be receiving a paycheck from which deductions can be taken, be eligible to participate in one of the State's health plans, and be one of the following:
- A permanent employee with an appointment of 50% time or more
- An employee hired for at least 4.5 months (one semester) at 100% time
- An employee with an appointment of 50% time or more for at least nine months
DCAP participation: if married, your spouse must meet one of the following conditions:
- Be gainfully employed
- Be a full-time student
- Be disabled and incapable of self-care
- Be unemployed, looking for work and have income for the fiscal year
Special rules apply for divorced or separated parents. Custodial parents who meet certain criteria may be eligible to participate. Noncustodial parents are ineligible to participate.
Medical Care Assistance Plan (MCAP)
Use this plan to cover the cost of medical expenses that are not paid by the health, dental or vision insurance, such as deductibles, doctors visit co-payments, co-insurance, eyeglasses, and other out-of-pocket expenses. Some over-the-counter items are eligible; however most require a written prescription to be eligible for reimbursement. MCAP Expenses List
Dependent Care Assistance Plan (DCAP)
Use this plan to cover the cost for eligible dependent care expenses such as:
- Day care centers
- Nursery schools
- Before-school care
- After-school care
- Housekeepers who also care for children
- Adult day care facilities
- Adult in-home day care
How Can I Contribute?
Each year, you will elect your pre-tax contribution amounts during Benefit Choice, and then your contributions for that year will automatically start via payroll deduction in July.
- Your contribution does not appear on your W-2 form as taxable income and is not subject to State, Federal or Social Security withholdings.
- The minimum amount to save in an FSA is $240 per year, which is $20 per month or $10 biweekly.
- The maximum amount differs for MCAP and DCAP:
- For FY2015: $2,500 per plan year for a combined maximum of $5,000 per couple per plan year. This is $208.33 per month, or $277.77 per month for University employees paid over a 9 month period, ($2,499.96 annually).
- For FY2016: $2,550 per plan year for a combined maximum of $5,100 per couple per plan year.
DCAP - The maximum contribution depends on your tax filing status as listed below:
- Single and head of the household: $5,000
- Married and filing separately: $2,500
- Married and filing jointly: $5,000
- Total combined family contribution if both spouses participate: $5,000
- For $5,000, the maximum contribution is $416.66 per month. (That is $555.54 per month for University employees paid over 9 months).
Please see the State of Illinois Flexible Spending Account Program booklet for more about the IRS maximum contribution to the DCAP.
How Do I Pay For Eligible Expenses?
The money in your accounts is easily accessible through several convenient options: payment card, online, mobile phone/device, fax, or mailing a paper claim.
- Your MCAP annual contribution amount is available on the first day of the plan year.
- For the MCAP, simply swipe your payment card like any other credit card to pay directly for an eligible purchase or service. This card is not available for the DCAP plan.
- Your DCAP reimbursement is limited to your contribution balance available in your account when your claim is received.
- Submit receipts online or through your mobile device. More information is available in this video: http://www.connectyourcare.com/video-library/cyc-mobile-video/
- For DCAP (and MCAP if you prefer) submit the FSA Reimbursement Claim Form with the proper documentation to ConnectYourCare (CYC) for reimbursement of eligible expenses. Reimbursement claims, incurred during the plan year, may be submitted up to three months following the close of the plan year.
- Fax your claim to CYC at 866-892-8063.
What Happens to My Remaining Balance At The End Of A Plan Year?
Remember, eligible expenses must be incurred during the plan year (July 1 through June 30). Then there is a limited MCAP and DCAP "Run-Out Period" from July 1 through September 30: this 90 day period allowed you to use up remaining funds for eligible expenses that you incurred during the previous plan year.
- MCAP: A balance up to $500 remaining after September 30, can be rolled over to the next plan year's MCAP account; however, you must re-enroll for the next plan year in order to qualify for the rollover benefit. If you do not re-enroll for the next plan year or you have a MCAP balance exceeding $500 after September 30, the remaining balance will be forfeited, per IRS regulations.
- DCAP: The rollover provision does not apply to DCAP accounts. Any unused DCAP balance remaining after the run-out period will be forfeited, per IRS regulations.
What If I Have To Go Off Payroll?
- In general, FSA participants who go off payroll are not eligible to participate in an FSA. Reasons for ineligibility include termination of employment, retirement or being on an unpaid leave of absence.
- Employees who return to work from a leave of absence when their FSA enrollment was terminated, must complete and submit a new enrollment form within 60 days of returning to payroll.