Have you considered participating in the Flexible Spending Account (FSA) Plan? It’s a simple way to save money using tax-free dollars for eligible medical and/or dependent care expenses. You can reduce your taxable income when you contribute to this plan.
How Can I Save Money?
You save in income tax with every dollar you set aside in this benefit plan. See the graphic, on the right, for an example of the potential savings.
Why Should I Participate And How Much Can I Set Aside?
You can use tax-free dollars to pay for eligible expenses including:
- Medical Care (MCAP) – use for expenses not covered by insurance, including doctor's visit co-pays and out-of-pocket expenses, eye glasses, hearing aids, physical therapy, prescription medicine, and more. The annual minimum contribution is $240 up to a maximum of $2,550.
- Dependent Care (DCAP) – may cover child and elder day care, before- and after-school care expenses, summer day camp, nursery school, pre-school costs, and more. The annual minimum contribution is $240 up to a maximum of $5,000.
What If I Have A Balance Remaining At The End Of The Plan Year?
- MCAP - There is a limited rollover available; see NESSIE for more information.
- DCAP - Any balance remaining is forfeited, per IRS regulations.
When Can I Enroll?
Enroll this May during the annual "Benefit Choice" open enrollment period in order to begin participating in July 2016.
How Do I Learn More?
View this video to learn about this tax-saving University benefit!
Questions?
Contact University Payroll and Benefits (UPB).
- Email: benefits@uillinois.edu
- Urbana: 217-333-3111
- Chicago: 312-996-6471
- Springfield: 217-206-7144 or 217-206-7211
Resources
See MCAP and DCAP in NESSIE
View a list of eligible MCAP expenses
View a list of eligible DCAP expenses
