UNM’s Human Resources is announcing a change to Flexible Spending Accounts for the year of 2020.
Flexible Spending Accounts are designed to automatically set aside money from your paycheck into an account that staff and faculty can access throughout the year to reimburse themselves for certain qualified expenses. The deduction from their paycheck is on a pre-tax basis which, therefore, reduces federal, state and social security taxes. Additionally, reimbursements are not taxed.
Currently the Plans are based on the calendar year, Jan. 1 to Dec. 31. Beginning in 2020, UNM Benefits will align FSA with UNM’s other benefit plans such as medical, dental, vision and life and disability plans to a fiscal year cycle.
HR is hoping the change will create a more streamlined enrollment process. To accomplish this, FSA Open Enrollment will consist of a Shortened FSA Plan Year for Jan. 1 to June 30, 2020.
The Health Care aspect of the 2020 Shortened Plan will include an election limit of $1,350 (subject to IRS change), a Health Care Carry-Over Allowance maximum is up to $500. Deadline to file claims is the shortened Plan Year is Nov. 30, 2020.
The Dependent Care aspect of the 2020 Shortened Plan will include an annual election limit which varies on tax filing status. Deadline to file claims for the shortened Plan Year is Nov. 30, 2020.
Human Resources recommends that staff and faculty who are planning on enrolling in the shortened Plan Year should begin estimating their out-of-pocket expenses anticipated for 2020 for Health Care (medical, dental, and vision and/or Dependent Care (child or adult day care) through June 30, 2020.
For more information, visit Flexible Spending Accounts.