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  3. Flexible Spending Accounts

Flexible Spending Accounts

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FSA Overview

Flexible Spending Accounts (FSAs) enable you to set aside some of your pay, on a pre-tax basis, into an account to pay for eligible health care or dependent care expenses. "Pre-tax" means you do not pay federal income or FICA taxes on the amount of money you put in the FSA. Because your income is going into your FSA before taxes, you save money by not paying income tax on that amount.

There are two types of Flexible Spending Accounts at Vanderbilt:

  • Health Care FSA reimburses items such as eyeglasses, copayments, prescriptions, medical supplies and some over-the-counter drugs — any eligible health care expenses that are not covered by a benefit plan. The annual election minimums and maximums are $104 to $3,200 per employee. If you are married and you and your spouse are employed and offered FSAs, the maximum election is $3,200 each.
  • Dependent Day Care FSA reimburses the cost of day care expenses for your children (under the age of 13) or other eligible dependents (learn more irs.gov). The day care must be used as a means to allow you and/or your spouse to be gainfully employed. The annual election minimums and maximums for Dependent Day Care FSA are $104 to $2,500 per employee. If both spouses work, both can claim $2,500 - for a total household limit of $5,000.

The money contributed to your FSA account must be used during the calendar year; it does not carry over from year to year. You do have a grace period until March 15 of the following plan year which allows you additional time to incur claims for reimbursement. You then have until April 15 to submit claims for reimbursement. Any unused funds after April 15 will be forfeited. Please plan your election amount carefully.

If you are on an unpaid leave and have a Flexible Spending Account (FSA), your payroll contributions will stop until you return to work. Upon your return to work, the remaining FSA election will be recalculated based on remaining payrolls and deducted from your pay.

How to enroll

For New Employees

If you want to enroll in an FSA, you must enroll within 30 days of your hire date. Your FSA start date will be the first day of the month following 90 days of eligible employment. You can file and be reimbursed for claims for eligible services received on or after your FSA start date. Payroll deductions begin upon the first paycheck after eligibility. For example, if you were hired on July 10, your payroll deductions would start with your November paycheck. The amount you elect will be deducted evenly from each paycheck for that year, beginning with the first paycheck after three months of employment.

For Current Employees
To continue an FSA each calendar year, you must request FSA enrollment during the benefits Open Enrollment period each fall. The FSA start date will be January 1 of the next calendar year. You can file and be reimbursed for claims for eligible services received on or after your FSA start date. Payroll deductions begin upon the first paycheck after eligibility.

How to access funds

There are two ways to access the money in your account(s). For your health care FSA, you may either use the Fidelity NetBenefits AccessCard at the point of service, or you can submit a claim to Fidelity for reimbursement. For a dependent care FSA, you may either use your NetBenefits AccessCard to pay the provider, or you may first incur the expense and then file a claim for reimbursement.

Debit card

The NetBenefits AccessCard is a convenient way to pay for eligible, unreimbursed medical expenses. You can swipe the card at the point of service, doctor’s office, or pharmacy. Remember, when you use the card, YOU MUST KEEP ALL RECEIPTS. The IRS requires Fidelity to verify that purchases made with the card we for eligible expenses.

If you have unverified expenses for more than 100 days, your card will be deactivated. At that point, you must provide receipts to verify those purchases in order for you card to be reactivated.  

Reimbursement

If you choose to submit a claim for your health care FSA or dependent care FSA, there are three ways to do so:

  1. Online at Fidelity NetBenefits. Log in with your username and password and then click on Accounts & Benefits, then select your Flexible Spending Account.
  2. Fax a receipt and the Reimbursement Request form to 1.855.810.8223. You can find the Reimbursement Request form online at Fidelity NetBenefits. After logging in, select the Flexible Spending and Reimbursement Account tile. From there you will see the Forms and Information link at the bottom of the page. The claim form is called the Reimbursement Request Form.
  3. Email the Reimbursement Request Form with receipts to Fidelity@service.healthaccountservices.com.

How to set up direct deposit for FSA reimbursements

How to enroll

  • Log into Fidelity NetBenefits and click on Accounts & Benefits in the top bar.
  • Select Flexible Spending and Reimbursement Accounts and click on Link a Bank Account. Then follow the instructions on the screen.
  • Direct Deposit guide

FSA Direct Deposit FAQs

How often are direct deposit reimbursements processed?
Direct deposit reimbursement claims are processed daily.

Once my direct deposit is issued, when will the money be in my account?
Your money should be in your account within one to two business days, depending on your bank.

After I set up direct deposit, when will it take effect?
The banking verification process typically happens in real time, as long as all of the necessary information is provided.

If your account cannot be verified immediately, you can verify using the micro-deposit verification process. Within one to three business days of entering your banking information, a micro-deposit ranging from $0.01 to $0.99 will be made to your account with the description “Fidelity Investm Pretax Benefit Trans”. Once the deposit has been made, you will need to log on to NetBenefits, click on the Flexible Spending and Reimbursement Accounts tile, then Link to a Bank Account. Once you click on the banner noting that you have an account that requires activation, select Activate and enter the micro-deposited amount, then select Submit.

End of employment - Submitting Claims

If your employment with Vanderbilt ends, you may still submit claims to be reimbursed. However, the claims must be incurred prior to your end of employment date. Your NetBenefits AccessCard will be deactivated upon your separation, but you may complete a Reimbursement Request Form and submit your claims to Fidelity by the deadline of the run-out period, which is April 15. To obtain claim forms and review your balance you must visit at Fidelity NetBenefits.

ResourcesExp

 

IRS Information

Contact information

Fidelity
netbenefits.com/vanderbilt
Customer Service: 1.833.299.5089

 

updated 06/30/2024