University of Minnesota
Office of Human Resources
http://www.umn.edu/ohr
612-625-2016

Flexible Spending Accounts

ADP Benefits Solutions (ADP) is the administrator for the Flexible Spending Accounts. Go to the ADP website to register your account online. ADP provides a secure account where you can review claims status, view statements, and complete ADP claim forms.

Once your account is registered, have your bank account information ready so you can also 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. Follow the instructions provided with the card to activate it and be sure to sign your card.

Please Note: If you enjoy the ease of using your Visa-branded, prepaid spending account card, be sure to hold on to the card after you have used up your 2013 account balance. The card is good for the next two plan years when you re-enroll in the Health Care FSA. The amount of your election in each of the 2014 and 2015 plan years will be added to the card.

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.  For more about the VRF, refer to this ADP communication guide (pdf).

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/same-sex domestic partner 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 inside your home or at a daycare center or family daycare.

Submitting Expenses

Eligible services must be incurred before you submit the claim form for reimbursement: Future dates of service are not accepted. When you incur an eligible expense, you submit the claim to ADP Benefits Solutions and receive your reimbursement in less than two weeks. For a 2013 Flexible Spending Account, you may file claims for expenses incurred from your effective date of coverage through March 15, 2014.

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.