Flexible Spending Accounts
Flexible Spending Accounts (FSAs)
Flexible Spending Accounts help you save tax-free dollars to pay for eligible out-of-pocket health care and dependent care expenses. Contributions are deducted from your paycheck before federal income tax, state tax (in most states), and Social Security (FICA) taxes are calculated, reducing your overall tax burden.
How FSAs Work
FSAs allow you to use pre-tax dollars for eligible expenses not reimbursed by insurance. Funds must be used by the end of the plan year or carryover threshold (if applicable). IRS rules apply:
- Claims for calendar year expenses must be submitted by March 31 of the following year.
- Reimbursed expenses cannot be claimed as tax deductions or credits.
Loyola offers three types of FSAs:
Health Care FSA
- Used for eligible medical, dental, and vision expenses not covered by insurance.
- Visit the FSA Health Care Page for more details
- Annual amounts elected as a new hire will be paid in their entirety on the 1st of the month after your hire date. Open Enrollment elections are available by January 1st of the upcoming year.
Dependent Care FSA
- Used for eligible daycare and dependent care expenses (e.g., preschool, before/after school care, summer day camp, elder care). Dependent children must be UNDER 13 years old.
- Visit our Dependent Care page for more details
- New hires can elect a Dependent Care FSA effective the first of the month following their hire date. Elections made during Open Enrollment take effect January 1 of the upcoming year. Funds are added to the account with each paycheck, so reimbursements are limited to the amount that has been contributed to date, not the full annual election as with other FSA plans.
Limited FSA (for participants enrolled in a High-Deductible Health Plan)
- Available to HDHP participants and covers eligible dental and vision expenses only.
- Visit the Limited- FSA Page for more details
- Annual amounts elected as a new hire will it its entirety the 1st of the month after your hire date. Open Enrollment elections are available by January 1st of the upcoming year.
Annual Contribution Limits
The annual contribution limits are determined by the IRS each year. The 2025 and 2026 maximum limits are:
| Contribution Year/Type | 2025 | 2026 |
|---|---|---|
| Healthcare Flexible Spending Account (FSA) | $3,300.00 | $3,400.00 |
| Limited Flexible Spending Account (LFSA) | $3,300.00 | $3,400.00 |
| Dependent Care Account (DCFSA) per household | $5,000.00 | $7,500.00 |
Carryover (Health & Limited FSA)
You may carry over unused Health Care and Limited FSA funds automatically up to the IRS-allowed limit:
- For 2025 plan year → up to $660 carries to 2026
- For 2026 plan year → up to $680 carries to 2027
Amounts above the carryover limit are forfeited per IRS “use-it-or-lose-it” rules. Carryovers are added to your available balance in the WEX Direct portal. FSA Health and Limited FSA participants will not have access to rollover amounts from the previous calendar year until AFTER the reimbursement March 31st, the deadline for the previous year has ended. Participants should see the remaining rollover funding in their WEX accounts by late May.
Please visit the IRS website to learn more.
WEX Direct Information
The WEX Direct portal
There are three ways to connect with the new WEX team.
- Via Telephone: 866.451.3399
- Via Email: customerservice@wexhealth.com
- Via Chat: https://wexinc.com/contact/health
Eligibility & Enrollment
Eligibility
Benefit-eligible faculty and staff (.80 FTE or higher) may enroll in FSAs.
- Limited FSA is available only if you’re enrolled in a High-Deductible Health Plan.
- Dependent Care FSA is available regardless of your health plan, as long as you have eligible dependents who are UNDER the age of 13 years old.
Enrollment
You may enroll:
- Within 31 days of hire or an eligible employment status change
- During Open Enrollment
- After a qualified life event
Enrollment elections do not automatically renew each year; you must re-elect annually during Open Enrollment.
Determining Annual Election Amount
To avoid forfeiture of your yearly elections, carefully consider the dollar amount to set aside.
- Review your out-of-pocket expenses for the previous two or three years. Identify how this might change in the current year, estimate your expenses accordingly, and elect an amount that will realistically cover expenses.
- Determine how much to set aside in your account during enrollment so that you do not have money remaining in the account at the end of the year.
Using Your WEX Debit Card
The WEX debit card lets you pay for eligible Health Care (and Limited) FSA expenses at the point of sale. Save all receipts; IRS regulations require documentation for certain transactions. WEX reserves the right to require receipts or documentation to support some or all of your debit card purchases. WEX will ask you to upload receipts through their portal. Any delay in submitting documentation to support your claim(s) can interrupt your ability to use your card or remaining funding.
WEX Support
- Phone: 866-451-3399
- Email: customerservice@wexhealth.com
- Chat: https://wexinc.com/contact/health
Reimbursement (No Card Use)
Submit expenses to WEX with required documentation using the FSA Reimbursement Request Form.
You can receive reimbursement by:
- U.S. Mail check
- Direct deposit (if enrolled)
Claims must meet the minimum reimbursement threshold and include required documentation (itemized statements or Explanation of Benefits). Always keep copies for your records.
Changing Your FSA Election
You may change elections only if you experience a qualified life event, such as:
- Marriage/divorce
- Birth, adoption or death of a dependent
- Change in dependent eligibility
- Change in employment status
- Change in daycare costs
Changes must be consistent with the event and reported within 31 days.
Note: Dependent Care FSA reimbursements cannot be used to claim the Dependent Care Tax Credit, consult your tax advisor to determine what’s best for your situation.
Leaving the University
What Happens if You Leave Loyola
- Dependent Care FSA ends with your last paycheck. You have 90 days to submit incurred eligible claims.
- Health and Limited FSAs may continue under COBRA for the rest of the plan year if you have unused funding remaining. Continued contributions towards your FSA via Cobra will be post-tax. Contact benefits@luc.edu for COBRA info.
Flexible Spending Accounts (FSAs)
Flexible Spending Accounts help you save tax-free dollars to pay for eligible out-of-pocket health care and dependent care expenses. Contributions are deducted from your paycheck before federal income tax, state tax (in most states), and Social Security (FICA) taxes are calculated, reducing your overall tax burden.
How FSAs Work
FSAs allow you to use pre-tax dollars for eligible expenses not reimbursed by insurance. Funds must be used by the end of the plan year or carryover threshold (if applicable). IRS rules apply:
- Claims for calendar year expenses must be submitted by March 31 of the following year.
- Reimbursed expenses cannot be claimed as tax deductions or credits.
Loyola offers three types of FSAs:
Health Care FSA
- Used for eligible medical, dental, and vision expenses not covered by insurance.
- Visit the FSA Health Care Page for more details
- Annual amounts elected as a new hire will be paid in their entirety on the 1st of the month after your hire date. Open Enrollment elections are available by January 1st of the upcoming year.
Dependent Care FSA
- Used for eligible daycare and dependent care expenses (e.g., preschool, before/after school care, summer day camp, elder care). Dependent children must be UNDER 13 years old.
- Visit our Dependent Care page for more details
- New hires can elect a Dependent Care FSA effective the first of the month following their hire date. Elections made during Open Enrollment take effect January 1 of the upcoming year. Funds are added to the account with each paycheck, so reimbursements are limited to the amount that has been contributed to date, not the full annual election as with other FSA plans.
Limited FSA (for participants enrolled in a High-Deductible Health Plan)
- Available to HDHP participants and covers eligible dental and vision expenses only.
- Visit the Limited- FSA Page for more details
- Annual amounts elected as a new hire will it its entirety the 1st of the month after your hire date. Open Enrollment elections are available by January 1st of the upcoming year.
Annual Contribution Limits
The annual contribution limits are determined by the IRS each year. The 2025 and 2026 maximum limits are:
| Contribution Year/Type | 2025 | 2026 |
|---|---|---|
| Healthcare Flexible Spending Account (FSA) | $3,300.00 | $3,400.00 |
| Limited Flexible Spending Account (LFSA) | $3,300.00 | $3,400.00 |
| Dependent Care Account (DCFSA) per household | $5,000.00 | $7,500.00 |
Carryover (Health & Limited FSA)
You may carry over unused Health Care and Limited FSA funds automatically up to the IRS-allowed limit:
- For 2025 plan year → up to $660 carries to 2026
- For 2026 plan year → up to $680 carries to 2027
Amounts above the carryover limit are forfeited per IRS “use-it-or-lose-it” rules. Carryovers are added to your available balance in the WEX Direct portal. FSA Health and Limited FSA participants will not have access to rollover amounts from the previous calendar year until AFTER the reimbursement March 31st, the deadline for the previous year has ended. Participants should see the remaining rollover funding in their WEX accounts by late May.
Please visit the IRS website to learn more.
WEX Direct Information
The WEX Direct portal
There are three ways to connect with the new WEX team.
- Via Telephone: 866.451.3399
- Via Email: customerservice@wexhealth.com
- Via Chat: https://wexinc.com/contact/health