Health Care and Dependent Care Flexible Spending Accounts
What You Need to Know:
Flexible spending accounts for medical and child care dependent care expenses allow you to put pre-tax money into an account and use it to reimburse you for payment of related bills. This money avoids federal income, Social Security taxes, as well as Kentucky state income taxes. If you would otherwise lose, for example, 25 percent of your salary to those taxes, you could save $250 of every $1,000 you run through the flex plan (exact savings depend on your tax bracket). This benefit is administered directly by ConnectYour Care.
"Jane Smith's" tax savings using health care and dependent care flexible spending accounts:
|Without FSAs||With FSAs|
|$28,000 taxable income||$28,000 taxable income, minus|
|No tax shelter for medical expenses||- $360 medical expenses ($30/month)|
|No tax shelter for child care expenses||- $2400 child care expenses ($200/month)|
|$28,000 taxable income||$25,240 taxable income after flex plan|
|Without FSAs, Jane pays $8,022!||Jane pays $7,231 in taxes. By using FSAs, Jane enjoys a tax savings, savings of $791!|
The difference in taking deductions pre-tax for premiums and participation in the medical care spending account versus paying for expenses after-tax is $791!
*tax assumes rates of 7.65% social security, 6% state and 15% federal
Types of Flexible Spending Accounts
Health Care Spending Account
Many medical, dental, vision and other health expenses are covered under the Health Care FSA. Consider taking advantage of your FSA benefit if you expect to incure expenses for chiropractic care, hospital visits, surgery, orthodontia, non-cosmetic dental treatments, laser eye surgery, glasses, wheelchairs, and more. Read more about Health Care Spending Accounts >>
Dependent Care Spending Account
FSA funds can be used for dependents under age 13 whom you claim as dependents on your federal tax return. Consider taking advantage of your FSA benefit if you plan on utilizing a babysitter or caregiver, child care center, daycare or preschool. Read more about Dependent Care Spending Accounts >>
Employees should register online at www.ConnectYourCare.com for online submission, claim status, information and FAQ's.
You can also enroll using the form in the right-hand column called "Flexible Spending Account Enrollment Form."
File a Claim
Who to Contact
Call the UK Benefits Office if:
- you are checking on your eligibility to participate in a health or dependent care spending plan
- you want to change your address
- you have a change in status during the plan year and you wish to change the amount you contribute to your medical and dependent care flexible spending account.
Call your flexible spending account plan administrator (ConnectYourCare) if:
- you would like a summary plan description for your plan
- you have a question about the status of a claim
- you need help filing a claim