The time to enroll for a Flexible Spending Account for calendar year 2010 is approaching, so now is an opportunity to consider if a Flexible Spending Account would benefit you.
FSAs allow participants to contribute a specific dollar amount, up to the annual maximums, on a pre-tax basis for qualified expenses. UNM offers FSAs to benefits-eligible employees regardless of enrollment in a UNM medical plan. Two types of Flexible Spending Accounts are offered, and an employee can enroll in one or both.
The medical reimbursement account reimburses certain medical, dental, vision, prescription and hearing care expenses not covered by any insurance plan for employees and eligible dependents. The maximum annual amount for a medical reimbursement account is $5,000.
The dependent care account reimburses participants for qualified dependent care expenses at a licensed facility for services provided by individuals, dependent care centers and other qualified care. The maximum annual election amount for dependent care is $5,000 (head of household or married filing jointly) or $2,500 (married filing separately).
By contributing on a pre-tax basis, taxable earnings are reduced, resulting in tax savings. If you decide to enroll, estimate expenses conservatively, because Flexible Spending Accounts are designed with a “use it or lose it” rule. If you have contributed more to the FSA than the services received by the end of the plan year, any remaining balance in the account is forfeited. Nevertheless, if you know you will have qualified expenses during the next calendar year, you will likely benefit from enrolling in a Flexible Spending Account.
FSA open enrollment is Wednesday, Nov. 4 - Wednesday, Nov. 18, so now is the time to consider how an FSA can benefit you. For more information about FSAs and how to enroll, visit the Division of Human Resources at hr.unm.edu and click “Benefits.”
Story by Helen Gonzales, vice president for Human Resources