A flexible spending account (FSA) is a powerful financial tool that can help you save money by allowing you to pay for eligible dependent care or health care expenses with pretax dollars. Your contribution to an FSA will reduce your taxable income, but the money set aside into each account can only be used for health care or dependent care expenses.
PayFlex manages our flexible spending accounts.
Inspira Financial
844-729-3539
www.inspirafinancial.com
Your flexible spending account enrollments need to be renewed every year during open enrollment.
You may set aside up to $2,550 each year on a pre-tax basis to pay for health, dental, and vision care expenses that are not covered by insurance. Eligible expenses include deductibles, copays, and over-the-counter medications (when prescribed by your doctor).
If you work at least 50 percent full-time, you can enroll in Health Care FSA.
You may set aside up to $2,500 or $5,000 each year (depending on your tax filing status) on a pre-tax basis to pay for dependent care expenses. Eligible expenses include child day care, adult day care (if you’re caring for an elderly parent), preschool, and summer day camps.
IRS documentation
To claim the income exclusion for dependent care expenses on IRS Form 2441 (Child and Dependent Care Expenses), you must be able to identify your dependent care provider.
If an individual provides your dependent care, you will need their Social Security number for identification. If an establishment provides your dependent care, you will need its Taxpayer Identification number.
Research Foundation Subsidy
The Research Foundation provides an annual subsidy to help pay for your dependent care expenses under the Dependent Care flexible spending account. The amount is based on your annual Research Foundation income as follows:
If you annual salary is: | The Research Foundation's contribution is: |
---|---|
Over $70,000 | $300 |
$60,001 - $70,000 | $400 |
$50,001 - $60,000 | $500 |
$40,001 - $50,000 | $600 |
$30,001 - $40,000 | $700 |
Up to $30,000 | $800 |
If you work less than full time, the contribution will be based on your full-time equivalent, annualized salary. For example if you work half time and earn $30,000, your full-time equivalent salary is $60,000.
Zachary Jenney
Manager
Research Foundation Benefit Services
Phone: 716-645-4439
Email: zjenney@buffalo.edu