Flexible Spending Accounts | Capital University, Columbus Ohio


Flexible Spending Accounts

  • Flexible Spending Accounts are provided by Custom Design Benefits. The accounts allow employees to set aside tax-free money to reimburse themselves for eligible expenses that are paid out of pocket. There are two types of accounts in which employees may participate, Health Care Reimbursement and Dependent Care Reimbursement Accounts. IRS regulations specify that if individuals do not use all of their money during the calendar year it will be forfeited. Capital University has adopted an IRS amendment that allows participants to continue to utilize leftover monies for up to two and a half months after the end of the plan year. 

    Active three-quarter time or greater employees are eligible to enroll in either account and participation in the program is optional. In general, the employee’s current spouse, children, stepchildren, and foster children are all eligible dependents.

    New employees must enroll within the first 31 days of employment. After the initial enrollment period, employees are permitted to make changes within 31 days of a qualifying event, such as marriage, the birth or adoption of a child, or the loss of coverage. Otherwise, employees must wait until open enrollment to add or make changes to their coverage.

    Employees select an annual election that is divided among the number of pay periods for the calendar year. The annual limits are $2,650 for Health Care Reimbursement and $5,000 for Dependent Care ($2,500 if married filing separately). The election amount selected by the employee is deducted from his/her paycheck and is exempt from Federal, State, and FICA/Medicare Taxes.

    Participants in the High Deductible Health Plan are not permitted to enroll simultaneously in a traditional Health Care Reimbursement Account. A “limited use” account, however, may be established. See the Human Resources Office for more details.