While your child care and medical care options may have changed during the COVID-19 crisis, many families are still looking for ways to save money on some common household expenses. As you consider what your family may need for the coming year, don’t forget you have benefit options available that may help. A flexible spending account (FSA) allows you to use pre-tax dollars to pay for eligible expenses, such as daycare or health care costs like copays or pain medication. In fact, using FSA funds for these types of expenses can save you an average of 30%!
MSU is happy to offer benefits-eligible employees the option to enroll in two different types of FSAs: Dependent Care FSA and/or Health Care FSA. You can enroll in one or both FSA plan types. You will manage your FSA directly with MSU’s plan administrator, HealthEquity/WageWorks.
Should I enroll in both FSA types?
Good question! The answer depends on what you and your family need. Make sure you know the eligible expenses each FSA plan allows you to use your pre-tax money on before you enroll in one or both plans.
Dependent Care FSA Eligible Expense Examples:
- Child care
- Elder care
- Virtual or in-person camps
- Before/after school programs
- Nursery school
- Find a complete list here
Health Care FSA Eligible Expense Examples:
- Medical/dental deductibles and copays
- Pain medication
- Menstrual care products
- Bandages
- Hearing aids
- Allergy medications
- Orthodontics
- Find a complete list here
When you enroll, you’ll decide how much money you’d like to contribute to the FSA. This money will be deducted from your paycheck (pre-tax) and divided over each pay period throughout the plan year.
How to Enroll
We encourage you to review these two FSA plan options and enroll – or re-enroll – in an FSA during the MSU Benefits Open Enrollment period in October. Before you enroll, make sure you take some time to understand each plan and estimate how much you are likely to spend on eligible expenses throughout the plan year. Since it may be difficult to plan your expenses due to the changing nature of the pandemic, we encourage you to plan conservatively. Due to IRS requirements, any unused funds left in your account at the end of the plan year will be forfeited. Learn more about FSAs – including contribution limits, deadlines, and eligible expenses – on the HR website.
Questions? Visit the FSA Plan Administrator website or call 877-924-3967. You can reach MSU Human Resources at SolutionsCenter@hr.msu.edu or 517-353-4434.
