Health Savings Account and Flexible Spending Accounts | University Benefits | Kent State University

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 enroll in the flexible spending account 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

$3,450 single or $6,900 family

Medical FSA:    $2,650 single or family 

Dependent Care FSA:   $5,000

Employer Contributions

Yes

No

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 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 left over 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 Health Savings Account (HSA)?

Yes, $1,000 for single high deductible medical plan and $2,000 for family high deductible medical plan at the first of the calendar year.  For 2018, the IRS maximum contribution limit is $3,450 for single high deductible medical plan and $6,950 for family high deductible medical plan.  NOTE:  Employer contributions are subject to be prorated according to your hire date during the year.

Coverage Level

KSU Contribution

Employee Contribution Limit

IRS Maximum Limit

Single

$1,000

$2,450

$3,450

Family

$2,000

$4,950

$6,900

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.  If you turn 55 by the year's end (2018), you are eligible for the catch-up contribution.

Can I enroll and contribute funds to the 2018 Health Savings Account (HSA)?  Is there a maximum I can contribute to the HSA?

There is 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
  • You 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 Healthcare 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 healthcare flexible spending account.  However, you CAN enroll in the dependent care flexible spending account and contribute a maximum of $5,000 for 2018.  

FLEXIBLE SPENDING ACCOUNT

(Healthcare and Dependent Care)

How does the Flexible Spending Accounts work?

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

Your healthcare and/or dependent care FSA contributions must remain in effective through Dec. 31, of the current year.  IRS regulations do not allow you to increase, decrease or stop your contributions during a plan year unless you have a qualified 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 is required and must be submitted within 31 days of the effective date of change.

 

Qualified healthcare and dependent care expenses that are incurred from Jan. 1 to Dec. 31 are eligible for reimbursement until March 15 of the following year.  This means you will have until March 15 of the next plan year to spend your current year's FSA funds.  Any current year funds remaining after March 15 will be forfeited.   All claim forms must be submitted no later than June 30 of the following year, to be reimbursed.  NOTE:  To be eligible to participate in a Health Savings Account (HSA), you must exhaust all FSA funds by the end of the current plan year.

 

Feel free to watch the FSA Video for more information.

 

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

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

  • Medical, dental, and vision deductibles, coinsurances 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 expenses for your eligible dependents.  Eligible expenses examples are:

  • A child under age 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 Healthcare and Dependent Care Flexible Spending Accounts?  How much can I contribute?

If you are enrolled in the traditional medical plans (ie: 90/70, 80/60 and the 85/60) you can contribute to both healthcare and dependent care FSAs.  According to the IRS, the maximum amount an individual can contribute to the health care FSA for 2018 is $2,650.  The maximum amount you can contribute to the dependent care FSA for 2018 is $5,000 for married couple filing a joint tax return or if filing separate tax returns is $2,500 per spouse. 

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

PNC Bank administers both the HSA and the FSA for Kent State University.  You can access your funds through the PNC BenefitPlus web site.

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