July 2013 > Special ANNUAL ENROLLMENT Edition for UT System Employees > UT FLEX
UT FLEX: Convenient, Easy Savings plus a Free Debit Card
Participating in the UT FLEX flexible spending account program is convenient, easy, and best of all, saves you money! Through your UT FLEX account, you can pay for eligible health care and dependent day care expenses using pre-tax dollars, which means you don’t pay federal income or Social Security taxes on this money.
How Much Might You Save?
|With an FSA||Without an FSA|
|Health Care FSA Contribution (pre-tax)||($1,500)||($0)|
|Dependent Care FSA Contribution(pre-tax)||($4,000)||($0)|
|Taxable Income After Contribution Amount||$34,500||$40,000|
|Estimated Taxes Withheld (22.65%)*||($7,814)||($9,060)|
|Money Spent After Tax on Health Care and Dependent Day Care Expenses||($0)||($5,476)|
|Take Home Pay||$26,686||$25,464|
*Based on 7.65% FICA and 15% tax bracket.
**Assuming $24 in administrative fees to use both accounts.
Note: Please be advised that this example is for illustrative purposes only. These projections are only estimates of tax information and should not be assumed to be tax advice. Be sure to consult a tax advisor to determine the appropriate tax advice for your situation.
Important: Due to Internal Revenue Service (IRS) requirements, beginning with the 2013-2014 plan year, the new annual maximum election for HCRA accounts is $2,500.
With a UT FLEX HCRA, you can set aside up to $2,500 per year in pre-tax dollars to pay for eligible health care expenses, including these common expenses:
- Deductibles, copayments, and coinsurance;
- Prescription drugs, insulin, and syringes;
- Dental exams, x-rays, fillings, crowns, and orthodontia;
- Eye exams, prescription eyeglasses, and prescription sunglasses;
- Contact lenses and cleaning solutions; and
- Hearing aids.
You can find additional details about eligible HCRA expenses online at www.UTFLEX.com.
The PayFlex Debit Card: You’re Getting One, and It’s Free!
Having the Payflex Debit Card has always made using the funds in your HCRA easier and more convenient. Beginning September 1, 2013, everyone enrolled in a UT FLEX HCRA will automatically receive a Debit Card at no cost to you (the participant cost for a Debit Card was previously $9).
Using the PayFlex Debit Card gives you several advantages, including:
- Improving your cash flow throughout the plan year by allowing you to directly access your account for eligible expenses rather than paying out of pocket and filing for reimbursement. You have direct access to your entire annual election amount beginning on the first day of the plan year (9/1/2013);
- Eliminating the need for you to complete claim forms or any other paperwork for most expenses (dental expenses and some others may still require documentation); and,
- Ensuring that eligible purchases are automatically deducted from your available UT FLEX HCRA balance so you always know how much you have remaining in your account.
Important: If you currently have a PayFlex Debit Card, do NOT discard it. As long as you make a UT FLEX HCRA election for 2013-2014, your Debit Card will continue to work (expired cards will be replaced as necessary).
You can set aside pre-tax dollars (up to $5,000 per family per calendar year) to pay for eligible expenses for dependent day care that allows you (and, if married, your spouse) to work, look for work, or go to school full time. Eligible expenses for care of qualified dependents include costs for:
- Before/after school care,
- Preschool or nursery school (for pre-kindergarten aged dependents), and
- Summer day camp.
You can find complete details about qualified dependents and eligible DCRA expenses online at www.UTFLEX.com.
Need Help Determining How Much to Elect?
Use the savings calculator online at www.UTFLEX.com to help you estimate your eligible expenses by itemizing your unreimbursed health and dependent day care costs. To use the calculator on the UT FLEX website, click on the Savings Calculator tab and enter your annual estimated costs in each category. Once complete, you’ll have an estimate for an annual election and you can also see your estimated tax savings!
Don’t forget – to participate in UT FLEX, you must make your election through the My UT Benefits online enrollment system during this year’s Annual Enrollment period – even if you are a current UT FLEX participant.
There is an annual administrative fee of $12 for each UT FLEX account (HCRA and DCRA). The administrative fee will always be the first deduction from your UT FLEX account(s) and is prorated for mid-year elections.