2021 Health Savings Account and Flexible Spending Accounts

PNC Bank (BenefitPlus) is the administrator for Kent State University's health savings accounts and flexible spending accounts.

Through PNC Bank, you can enjoy special discounts on banking products, direct deposit of your paycheck, and convenient on-campus banking. To find out more about rewards, account offerings, online banking, and more, just visit PNC Bank's website today.  Note:  You must re-enroll in the flexible spending account or health savings account EACH year.  These plans do not roll over each year. 

What is the difference between HSA and FSA accounts?

Consideration

HSA (Health Savings Account)

FSA (Flexible Spending Account)

Eligibility

Must enroll in a High Deductible Health Plan 

No requirements

Contribution Limit

$3,600 single or $7,200 family

*amounts include an employer contribution

Medical FSA:    $2,750 single or family 

Dependent Care FSA ("daycare"):   $5,000

Change Contributions

Anytime throughout the year

Only during open enrollment or life status change

Rollover

Unused balances rollover

Use it or lose it.  Funds must be used by March 15 of the following year.

NOTE: You must re-enroll each year.

Taxes

Pre-tax deduction

Pre-tax deduction

HEALTH SAVINGS ACCOUNT

How does the Health Savings Account work?

You elect an annual contribution which will be deducted on a pre-tax basis from each of your paychecks in equal amounts.  These contributions are to help you pay for current and future health care costs that your insurance does not cover.  What funds you have leftover at the end of the year will stay and continue to grow tax-free, as long as you use it for medical costs.  Fee free to review the HSA video for more information.

Will Kent State contribute to the 2021 Health Savings Account (HSA)?

Yes, $1,100 for a single high deductible medical plan and $2,000 for a family high deductible medical plan.  For 2021, the IRS maximum TOTAL contribution limit is $3,600 for a single high deductible medical plan and $7,200 for a family high deductible medical plan.  The employer contribution will be posted to your PNC HSA account 2-3 business days after your first pay date in 2021.

Coverage Level

KSU Contribution

Employee Contribution Limit

IRS Maximum Limit

Single

$1,100

$2,500

$3,600

Family

$2,000

$5,200

$7,200

What does HSA catch-up contribution mean?

Similar to IRA’s and 401K’s, there are catch up contributions of $1,000 for those age 55 and over for individual and family plans.  

Can I enroll and contribute funds to the 2021 Health Savings Account (HSA)?  Is there a maximum I can contribute to the HSA?

You can contribute to your HSA at any time throughout the year.  You can also increase and/or decrease your contributions to your HSA any time throughout the year.  Just complete the HSA enrollment form and submit it to benefits@kent.edu.  There are some IRS qualifying requirements in order to enroll in a health savings account such as:

  • You have to be enrolled in a qualified high deductible health plan.
  • You must not have other medical coverage.
  • You must be 18 or older
  • An employee cannot be enrolled in Medicare
  • You cannot be claimed as a dependent on someone else's tax return.
  • You cannot be enrolled in a health care flexible spending account (FSA) or a health reimbursement account (HRA).

If I enroll in a high deductible health plan, can I enroll in a Health Care Flexible Spending Account (FSA)?  If so, how much can I contribute?

If you enroll in a high deductible health plan, you cannot enroll in the health care flexible spending account.  However, you CAN enroll in the dependent care ("daycare") flexible spending account and contribute a maximum of $5,000 for 2021.  

FLEXIBLE SPENDING ACCOUNT

(Health Care and Dependent Care)

How does the Flexible Spending Accounts work?

You elect an annual contribution which will be deducted on a pre-tax basis from each of your paychecks in equal amounts.

Your health and/or dependent care FSA contributions for 2021 must remain in effect through Dec. 31, 2021.  IRS regulations do not allow you to increase, decrease, or stop your contributions during a plan year unless you have a qualifying life event such as marriage, divorce, birth, death, etc.  Any FSA contribution changes you make must be consistent with the type of life event.  Proof of the life event (qualifying event) is required and must be submitted within 31 days of the effective date of the change.

 

Qualified health and dependent care expenses incurred from Jan. 1 to Dec. 31, 2021, will be eligible for reimbursement from your FSA accounts.  However, you can use the remaining 2021 funds from your health care and/or dependent care funds until March 15, 2022.  This means you will have until March 15, 2022, to spend your 2021 FSA funds before they are FORFEITED.  All 2021 claim forms must be submitted by June 30, 2022, for reimbursement.

 

Feel free to watch the FSA Video for more information.

 

What is the difference between the Health Care FSA and the Dependent Care FSA?

The Health Care FSA provides you the opportunity to have funds deducted from your pay on a pre-tax basis for health care expenses for yourself AND your dependents as long as these expenses are not covered by your medical, dental, or vision plan.  Eligible health care expenses examples are:

  • Medical, dental, and vision deductibles, co-insurance, and office visits
  • Prescriptions
  • Eligible over-the-counter drug expenses

The Dependent Care FSA provides you the opportunity to have funds deducted from your pay on a pre-tax basis for dependent care ("daycare") expenses for your eligible dependents.  Eligible expenses examples are:

  • A child under age 13 and who is claimed as a dependent on your taxes.
  • A child 13 and older who: 1)  depends on you for at least half of their support; 2) regularly spends at least eight hours a day in your household; and 3) is physically or mentally unable to care for him/herself.
  • Summer day camps
  • Before and after school care
  • Extended day programs
  • Elderly daycare

Can I enroll in both the Health Care and Dependent Care Flexible Spending Accounts?  How much can I contribute?

If you are enrolled in the 85/60 plan you can contribute to both health care and dependent care FSAs.  According to the IRS, the maximum amount an individual can contribute to the Healthcare FSA for 2021 is $2,750.  The maximum amount you can contribute to the Dependent Care (DAYCARE) FSA is $5,000 for a married couple filing a joint tax return or if filing separate tax returns are $2,500 per spouse. 

How can I access my contributions to the Health Savings Account and/or the Flexible Spending Accounts?

Once enrolled in either the HSA or FSA, PNC Bank, who administers both the HSA and the FSA for Kent State University, will send you a debit/credit card to access your accounts.   If you lose your card or have questions about your PNC account, you can contact PNC through their web site PNC BenefitPlus or call their customer service at 844-356-9993.