Spending Accounts
Carnegie Mellon offers spending accounts to help you lower your health and dependent care expenses by paying with tax-free money. You can save up to 25% on the money you spend on eligible expenses by contributing to the spending accounts on a pre-tax basis. Please visit the plan pages to learn more about each plan, including tax implications of participating.
- Health Savings Account (HSA) — Accompanies High Deductible Health Plans and is used to pay for qualified medical, prescription, dental and vision expenses with tax-free dollars. You own this account and can take the account dollars with you if you leave the university. Eligible full time employees who are enrolled in an HDHP with HSA plan can participate. If you or your spouse are enrolled in an HCFSA, you cannot enroll in an HSA.
- Health Care Flexible Spending Account (HCFSA) — Allows you to use pretax dollars for qualifying medical, dental and/or vision expenses for you and your federal tax dependents. Eligible full time employees who are not enrolled in a High Deductible PPO with HSA Plan can participate. If you or your spouse are enrolled in an HSA, you cannot enroll in an HCFSA.
- Limited Purpose Flexible Spending Account (LPFSA)— A special type of flexible spending account that can be used with an HSA and lets you use pre-tax dollars to pay for qualified dental and vision expenses. Using funds from your LPFSA instead of your HSA to pay for eligible expenses allows your HSA to continue to grow tax-free into retirement. Eligible full time employees who are enrolled in an High Deductible PPO with HSA Plan can participate.
- Dependent Care Reimbursement Account (DCRA) — Helps you lower your dependent care expenses by paying with tax-free money. With the DCRA, you put aside money from your pay on a pre-tax basis to cover anticipated dependent daycare or elder care expenses while you work or attend school. Any eligible full time employee can participate in the DCRA.
Eligibility
- You must be full-time benefits eligible (37.5 scheduled hours per week) to enroll. Members of the Campus Police Association must be scheduled to work 40 hours per week to be eligible.
- Elections for the HCFSA, LPFSA and DCRA do not roll over from year to year. You must make a new election each year to participate.
How Flexible Spending Accounts and Dependent Care Reimbursement Accounts Work
- Determine the out-of-pocket expenses that you expect you will incur in health or dependent care costs.
- Carefully estimate the amount you will set aside into each kind of account each month. Try to contribute enough to cover most of your expected expenses (since it saves you money), but not more than you will use. What you do not use, you will lose, per IRS regulations.
- Each month, the amount you selected will be deducted from your pay before taxes are assessed.
- Throughout the year, you will incur eligible health or dependent care expenses. You may pay for them out of pocket or with an FSA debit card.
- For expenses that you pay out of pocket, file claims to reimburse yourself with your tax-free money.
- Claims incurred during the plan year should be submitted by June 30 following the end of the plan year.
Spending Account Comparison
HSA | HCFSA | LPFSA | DCRA | |
Who Can Contribute? | Eligible full time employees who are enrolled in an HDHP with HSA plan | Eligible full time employees who are not enrolled in an High Deductible PPO with HSA Plan | Eligible full time employees who are enrolled in an HDHP with HSA plan | Eligible full time employees |
Contribution Limits |
Between $0 and $3,850 per year for individuals ** Between $0 and $7,750 per year for families** |
Between $60 and $3,050 per year | Between $60 and $3,050 per year | Between $300 and $5,000 per year* |
Plan Year | N/A | Calendar year plus a 2.5-month grace period (Jan 1, 2023 – Mar 15, 2024) |
Calendar year plus a 2.5-month grace period (Jan 1, 2023 – Mar 15, 2024) |
Calendar year |
Deadline to Request Reimbursement | N/A | June 30, 2024 | June 30, 2024 | June 30, 2024 |
Eligible Expenses | Medical, prescription, dental and vision | Health care | Dental and vision | Day care / elder care |
*$2,500 if married, filing separately.
**55 years and older are eligible to make an annual catch-up contribution of $1,000.
Spending Account Information and Forms
BCC (through 2022 plan year)
- FSA Overview [pdf]
- FSA Qualifying Expenses [pdf]
- Reimbursement Request Form [pdf]
- Electronic Funds Transfer Request [pdf]
- Additional Debit Card Request [pdf]
- My SmartCare FSA Account Information Website
- FSA Account Registration [pdf]
- FSA Online Claims Submission Instructions [pdf]
- FSA Mobile App Instructions [pdf]
WEX (beginning in the 2023 plan year)
- WEX Account Login
- Medical FSA Employee Handout [pdf]
- Flexible Spending Account Contribution Limits and IRS Regulations [pdf]
- Health Savings Account Contribution Limits and IRS Regulations [pdf]
- How to Set up Your Online Account [pdf]
- How to File a Claim in Your Online Account [pdf]
- How to Set up Direct Deposit in Your Online Account [pdf]
- How to Set up the WEX Benefits Mobile App [pdf]
- How to File a Claim in the WEX Benefits Mobile App [pdf]
- Four Ways to Pay for Eligible Items with Your Benefits Debit Card [pdf]