One of the benefits for graduate assistants with a 50% or greater appointment as part of the contract is the ability to enroll in a flexible spending account (FSA) for healthcare and/or dependent care (if eligible). This benefit is covered in Articles 26.3 and 27.1 of the contract.  To set up an FSA you must register on MyU within 30 days of starting a GA Appointment, during an open enrollment period (dates may vary; see here for the next open enrollment period), or after a qualifying life event (see here).

What is a Flexible Spending Account (FSA)?

An FSA is an account where you can set aside a portion of your income (before paying taxes on your income) and then use that money for specific things. When you enroll, you will specify an amount you want to place in the FSA for the next calendar year. That amount will be available for you to spend on eligible expenses throughout the year during the time when you hold a GA appointment, while the deduction will come out of your paycheck in installments (see below for details about summer eligibility and limits). In other words, you will have money you can spend without it being taken out of your paycheck all at once! A healthcare FSA allows you to spend that money on items related to out-of-pocket healthcare expenses. A dependent care FSA allows you to spend that money on caring for dependents. Using an FSA allows you to save money because you only pay taxes on your income that is not directed into your FSA. However, you need to be careful not to put much more into your FSA than you will use, because at the end of the year (plus a small grace period) you will lose any unspent money.

What are eligible expenses for an FSA?

Eligible expenses for an FSA are defined by the IRS (the USA tax authority) and can be found here for a healthcare FSA and here for a dependent care FSA.

What is the “Use it or Lose it” Rule?

If you do not use all of the money in your FSA for expenses incurred between the date your coverage is effective and the grace period deadline on March 15 of the following year (or when your coverage ends), your unused money is returned to the U. All of your claims must be submitted by March 31 of each year.

Can I use my FSA in the summer if I don’t have an appointment?

If during the summer you: 

  • do not hold a GA appointment, 
  • are on fellowship, 
  • or hold an appointment of less than 20 hours per week

 and if you:

  •  hold an appointment during the academic year (spring term and fall term) 

The University will treat the end of your appointment in the spring as a termination. This means you will lose the money in the FSA if you do not use it during the spring semester (with a 90-day grace period).

How do I register?

You can enroll in the FSA through MyU under the My Benefits tab during an open enrollment period or within 30 days of the start of a GA appointment. You will need to re-enroll in the FSA every year.

How much does an FSA cost?

As much as you want to contribute! FSA contributions are deducted pre-tax from GA paychecks bi-weekly. The deduction is equivalent to the amount elected in the FSA divided by the remaining number of pay periods in the calendar year.

How much money can I put in an FSA?

Contribution limits can change year-to-year. Check here for minimum and maximum contributions for each account type.