University of Minnesota
Office of Human Resources

Flexible Spending Accounts

ADP Benefits Solutions (ADP) is the administrator for the Flexible Spending Accounts. Register your account online on the ADP website, which provides secure access to review claims status, view statements, and complete ADP claim forms.

Once you've registered, have your bank account information ready and follow the steps to sign up for direct deposit of your reimbursement funds.

Health Care and Dependent Daycare Flexible Spending Accounts

The University offers two types of Flexible Spending Accounts: a Health Care account and a Dependent Daycare account. These Flexible Spending Accounts (FSAs) allow you to pay for related eligible expenses using pre-tax dollars.

Upon enrollment, you elect an amount to be withheld from your paycheck before federal, state, and Social Security taxes are withheld. This amount is deducted from your pay in equal installments throughout the calendar year if you enroll during the open enrollment period in the fall or throughout the remainder of the calendar year if you enroll mid year.

To continue your participation in the University's Flexible Spending Accounts, you must re-enroll each fall during the open enrollment period for the next calendar year.

Health Care FSA

The Health Care account allows you to pay for many health care expenses not covered by your medical and dental plans, such as payments you make for the diagnosis, cure, treatment or prevention of disease; vision care expenses for prescription eyeglasses and contact lenses; as well as medicines and drugs that require a prescription.

Spending Account Card

For your Health Care FSA, you will receive a spending account card, a secure VISA®-branded, prepaid card from ADP. The amount of your election is added to the card. Follow the instructions provided with the card to activate it and be sure to sign your card. This spending account card gives you direct access to your health care funds, avoiding the need to pay upfront and then submit a claim for reimbursement.

Validation Request Form (VRF)

The IRS requires all spending account card purchases be validated. Over 90% of these purchases are automatically validated, but the other 10% will need to be validated by submitting documentation. Until you receive a Validation Request Form (VRF), no action need be taken. If ADP has your email address in their system, you will receive an email that your VRF is ready and posted to your account; otherwise, a paper VRF will be mailed to your home. Then just follow the steps to submit your itemized receipts.

Dependent Daycare FSA

The Dependent Daycare account allows you to pay for charges that you incur for the care of your dependents so that you or, if married, you and your spouse may work. This includes expenses for eligible dependent children (under age 13) and may apply to a spouse or parent who resides with you and is physically or mentally incapable of self care. Care for eligible dependents may be provided in your home or at a daycare center or family daycare.

Submitting Expenses

When you incur an eligible expense after your effective date of participation, you submit the claim for reimbursement to ADP Benefits Solutions. You will receive your reimbursement in less than two weeks. Future dates of service are not accepted. For your 2016 Flexible Spending Account, you may file claims for expenses incurred from your effective date of coverage through March 15, 2017. Your claims must be submitted by March 31, 2017.

Please note: if you have funds remaining in your 2015 Flexible Spending Account, you may incur and file claims for eligible expenses through March 15, 2016. All claims must be submitted by March 31, 2016.

Note: There is a difference between the IRS guidelines for submitting expenses (see IRS Publication 502) and the FSA reimbursement program. For example, according to Pub 502, you can submit dental, medical expenses and long-term care insurance premiums you paid this year, regardless of when the services were provided, as a deduction on Schedule A; however, none of these expenses are eligible through a flexible spending account. Flexible spending accounts are administered based on dates of service, not on dates payments are made for an expense.

The IRS requires that if you do not use your full balance for expenses incurred between your effective date and March 15 of the following year, you lose the unused portion.