2021 Flexible Spending Accounts

Health Care Flexible Spending Account (HCFSA)

Allows you to use pre-tax dollars to pay eligible health care expenses not covered by your medical or dental plan.

Eligibility

  • All benefits-eligible Faculty, Exempt, Non-Exempt and SEIU employees are eligible to contribute.
  • You may be eligible for a Dartmouth contribution of up to $250 if you:
  • Are Non-Exempt or SEIU; OR are Faculty or Exempt and making $60,000/year or less; AND
  • Select the OAP medical plan OR elect no medical coverage.

Key Benefits

  • Set aside guaranteed pre-tax dollars that you can use during the year to pay for eligible medical expenses.
  • The account can be used in conjunction with an HRA to help pay vision and dental expenses, co-pays, and additional deductible and coinsurance amounts not paid by the HRA.
  • You can use your Sentinel Benefits & Financial Group Benny Card to pay for eligible expenses on day one, and even spend leftover HCFSA dollars at thefsastore.com without substantiation.

Annual Contribution Limits

Employee Contributions

  • Individuals may contribute up to $2,750 for the calendar year 2021 (this amount may change upon IRS notification)
  • If you are coming to Dartmouth from another employer where you contributed to a HCFSA account, you ARE allowed to contribute the full limit amount through Dartmouth.

Employer Contributions

  • You may be eligible for a Dartmouth contribution of up to $250 if you:
    • Are Non-Exempt or SEIU; OR are Faculty or Exempt and making $60,000/year or less; AND
    • Select the OAP medical plan OR elect no medical coverage.
    • This amount is prorated based on your date of hire (if newhire/rehire) and your Full Time Equivalency (FTE)

Other Considerations

  • Some expenses will require substantiation as you spend. Keep your receipts for any expense that is paid by your HCFSA.
  • There is a $30 minimum to carry over unused HCFSA funds to the following year.  If your balance is below that amount, be sure to spend the balance before the end of the year so that it is not forfeited (Use it or lose it).
  • There is a $550 maximum to carry over unused HCFSA funds to the following year.  If your balance is greater than that amount, be sure to spend the additional balance before the end of the year that it is not forfeited (Use it or lose it)
  • HCFSAs have strict year-end deadlines regulated by the IRS. All funds in excess of the $550 carryover will be forfeited.

How the Benefit Works

  1. Money comes out of your pay check each pay period, and goes into your HCFSA Account at Sentinel Benefits, reducing the amount of taxes you pay each pay period.
  2. The full amount that you elect to contribute for the year plus any money that Dartmouth gives you for the year, is all  front-loaded into your HCFSA Account as of 1/1/20 (as of benefits eligibility date if new to benefits).  This means that the full balance is available for your to start using on day one.
  3. If you or an eligible dependent incurs an eligible medical expense that is not covered by your health plan plan, here is how the benefit works:
  4. You have the option to:
    1. Use the Sentinel Benny card to pay the bill at the time of service
    2. Pay out of pocket and submit the paid claim to Sentinel.  Upon substantiation, Sentinel will reimburse you by way of direct deposit or paper check.
    3. Or obtain a copy of an unpaid invoice, submit the unpaid claim to Sentinel. Upon substantiation, Sentinel will reimburse you by way of direct deposit or paper check.  You will then have funds available to pay your health care provider. The IRS does not require that you show proof of payment to receive reimbursement.
  5. With some carryover exception (see #6 below), all funds in the account MUST be spent on claims that were incurred in the current calendar year, otherwise the remaining balance will be forfeited.
  6. Any unclaimed balance remaining in your account at the end of the March 31st run out period:
    1. that is less than $30 will be forfeited; or
    2. that is greater than $550 will be forfeited; or
    3. that is between $30 and $550 (inclusive) will carryover and will be added to your 2021 HCFSA balance for use during the 2021 plan year.
    4. DO NOT FORGET TO SUBMIT ALL OF YOUR CLAIMS BY THE MARCH 31st DEADLINE.
  7. If you leave Dartmouth, all funds that you have contributed year to date, plus any funds that Dartmouth has contributed on your behalf are yours to spend.  You will have until the last day of the month in which you are employed with Dartmouth to incur/spend the funds in your account, otherwise you may want to consider continuing the benefit under your COBRA rights.  If you do not spend your funds prior to the last day of the month and do not elect to continue the benefit under COBRA, any unused funds will be forfeited.
  8. Use this link to watch a video and for help with navigating Sentinel's online employee portal: https://help.sentinelgroup.com/help/navigating-your-online-account
  9. You are not required to report contributed or spent HCFSA funds on your annual tax return.

Dependent Care Flexible Spending Account (DCFSA)

Allows you to use pre-tax dollars to pay for childcare or care for an elderly or disabled family member.

Eligibility

  • All benefits-eligible Faculty, Exempt, Non-Exempt, and SEIU Employees may contribute.
  • Research Associate Bs and Research Fellows are not eligible to participate in the DCFSA.
  • You may NOT contribute to a DCFSA while you or a spouse are not working (i.e. leave of absence, hiatus, unemployed, etc.)

Key Benefits

  • Funds can be used tax-free to pay qualified dependent care expenses, including:   
    • Child care services
    • Nannies
    • After school programs
    • Summer day camps
    • Adult day centers for aging parents
    • Nursing care for dependents with handicaps
  • Funds are available as they are deposited.
  • You will receive a Benny Card to use to pay eligible expenses.

Annual Contribution Limits

Employee Contributions

  • A Married couple filing joint tax return may contribute up to $5,000 per household in 2021.
  • A Single parent filing head of household may contribute up to $5,000 per household in 2021.
  • Married Couple's filing separate tax returns may contribute up to $2,500 each in 2021.
  • Highly compensated individuals making an annual salary over a certain amount, may not be allowed to contribute the full maximum, an audit will conducted prior to January 1st to determine that amount for 2021 and you will be notified if you are impacted by this rule.

Other Considerations

  • Qualifying dependents may be defined as children under the age of 13, or a child or relative who is physically or mentally incapable of self-care.
  • If you don't use your Benny Card to pay for qualifying DCFSA expenses, claims can either be submitted online through Sentinals portal or manually by using the claim form.
  • DCFSAs have strict year-end deadlines regulated by the IRS. All funds not used by the end of the grace period of March 15th will be forfeited.

How the Benefit Works

  1. Money comes out of your pay check each pay period, and goes into your DCFSA Account at Sentinel Benefits, reducing the amount of taxes you pay each pay period.
  2. Unlike the HCFSA account, the amount that you elect to contribute for the year is NOT front-loaded into your DCFSA Account on 1/1/20 (or as of benefits eligibility date if new to benefits). This means that you cannot receive back more than what you have in your account.
  3. If you contribute $400 per month, and have $400 in your account, then submit an invoice for $800, Sentinel will reimburse the $400 in your account, and once you contribute the next $400, Sentinel will automatically pay you the next $400 because it has already been substantiated by the $800 invoice.
    NOTE:  Be sure to include a Tax ID number for your day care provider on your substantiation documentation or a Social Security Number when using nannies or individuals. 
  4. You have the option to:
    1. Use the Sentinel Benny card to pay the bill at the time of service.
    2. Pay out of pocket and submit the paid claim to Sentinel. Upon substantiation, Sentinel will reimburse you by way of direct deposit or paper check.
    3. Or obtain a copy of an unpaid invoice, submit the unpaid claim to Sentinel. Upon substantiation, Sentinel will reimburse you by way of direct deposit or paper check. You will then have funds available to pay your day care provider. The IRS does not require that you show proof of payment to receive reimbursement.
  5. With some grace period exception (see #6 below), all funds in the account MUST be spent on claims that were incurred in the current calendar year, otherwise the remaining balance will be forfeited. NOTE: 2021 allotted funds cannot be used to pay for 2020 incurred claims.
  6. You are allotted an extra 2.5 month grace period (until March 15, 2020) into the following calendar year, to spend any remaining balance in your account.  Any unclaimed balance remaining in your account as of March 31st run out period will be forfeited.  DO NOT FORGET TO SUBMIT ALL OF YOUR CLAIMS BY THE MARCH 31st DEADLINE.
  7. If you leave Dartmouth, all funds that you have contributed year to date, plus any funds that Dartmouth has contributed on your behalf must be incurred/spent by the last day of the month in which you are employed with Dartmouth, otherwise any unused funds will be forfeited.  This benefit is not eligible for continuation under COBRA, like the HCFSA is.
  8. Use this link to watch a video and for help with navigating Sentinel's online employee portal: https://help.sentinelgroup.com/help/navigating-your-online-account
  9. You are not required to report contributed or spent DCFSA funds on your annual tax return.

 

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