Flexible Spending Account and Health Savings Account
Your benefit coverage at Kent State University provides coverage for a variety of expenses. Still, there are some types of expenses not covered under the program. That's why we offer a program called Flexible Spending Accounts that let you use pre-tax dollars to pay for certain health care and dependent care expenses for yourself or your eligible dependents.
What is a Flexible Spending Account (FSA)?
A flexible spending account (FSA) is type of savings account that allows employees to pay for "out-of-pocket" expenses for eligible medical and/or daycare expenses at a tax-free advantage. Unlike a health savings account, a flexible spending account is a "use it or lose it" plan in which funds that are set aside for that calendar year will be lost if funds have not been used by March 15 of the following year. This benefit requires re-enrollment each year. View the FSA video from PNC Bank about flexible spending accounts for more information.
There are two types of flexible spending accounts available at Kent State:
- Health Care Flexible Spending Account - (HCFSA) allows you to be reimbursed for expenses that are not covered under the health care plans for yourself and your eligible dependents.
- Dependent Care Flexible Spending Account - (DCFSA) allows you to reimburse yourself for eligible day care expenses for your eligible dependents. An eligible dependent is a child under age 13. Older dependents, such as a spouse, parent or older child, are also eligible if they are physically or mentally incapable of caring for themselves, reside in your home at least eight hours per day, and are claimed as your dependents for income tax purposes.
Services may be provided in or out of your home (but not in a nursing home) by someone who is not your dependent for income tax purposes. Day care centers caring for six or more children must be licensed. In order to receive tax-free reimbursement, the federal government requires you to provide the Tax Identification Number (TIN) of your dependent care provider. The TIN for an individual is his or her Social Security Number.
NOTE: Eligible expenses and requirements are subject to IRS regulations.
What is a Health Savings Account (HSA)?
A health savings account is a type of savings account that is designed to be a place where you can set aside pre-taxed money that can be used for medical expenses that go above and beyond insurance coverage such as co-pays, deductibles and other non-covered medical expenses. The funds in an HSA roll over from year to year, unlike a flexible spending account. The money that is put into this account can also be used for investment opportunities. However, it is important to be aware that the funds from this type of account that are not used for medical purposes is liable for taxation.View the HSA video from PNC Bank about health savings account for more information.