Reimbursement Accounts

[Faculty Handbook Category #4]

All employees are eligible to participate in a program that allows employees to establish reimbursement accounts for either dependent care or out-of-pocket health care expenses with pre-tax dollars.  Money set aside in these accounts is exempt from Social Security, Medicare, federal income tax, and state income tax.  Contributions to these accounts cannot exceed 100% of pay.  If the full value of an account is not used during the plan year (September 1 – August 31), the employee will forfeit the remaining amount.

The IRS regulations governing these programs limit the types of changes that participants may make during the plan year. Participants who set aside money are bound to those amounts for the entire plan year.  Participants are not allowed to discontinue or change the amount of the contribution, except in very limited circumstances.  Changes must be made within 30 days of a qualifying event.

Please refer to the Flexible Benefits Summary Plan Description or contact Human Resources for questions regarding status changes, eligible expenses, reimbursement procedures and plan limitations.

Medical Reimbursement Account

Employees may participate in this program up to a maximum as defined by the Flexible Benefit Plan (refer to the Human Resources website, Benefit Overview section).  This account is designed to reimburse employees for medical expenses that are not paid for through other plans (i.e., dental care, glasses and contacts, prescriptions, deductibles, co-payments, etc.).  Certain over the counter medicines are also eligible.

Dependent Care Reimbursement Account

Employees may participate in this program up to a maximum as defined by the Flexible Benefit Plan (refer to the Human Resources website, Benefit Overview section).  If you are married, the services must be provided to enable you and your spouse to be employed, unless one spouse is a full-time student and the other is employed.  For the purposes of this plan, dependents are generally under age 13 who are listed as dependents on your federal income tax return.  However, there may be other individuals who qualify, such as older children, spouses or parents who are physically or mentally incapable of self-care.