Active faculty and staff wanting to save on their out-of-pocket health and/or child-care expenses can enroll or re-enroll in the University’s flex spending plans for calendar year 2005.
The plan’s open-enrollment period ends Nov. 30.
These plans allow employees to avoid paying federal, state and Social Security/Medicare taxes on money specifically set aside from their paychecks into the spending accounts.
The annual limit is $5,000 per employee for the health-care spending plan and $5,000 per family for the dependent child-care spending plan. Employees can enroll in either plan or both.
Interested employees — even those who are enrolled for 2004 — must re-enroll before the Nov. 30 deadline to ensure their participation for 2005.
Those expenses that are not covered by your health, dental, prescription drug or vision benefits can be reimbursed from the pre-tax health-care spending account.
Examples of qualifying expenses include: deductibles, co-insurance, office visit co-pays, prescription drug co-pays, hospital emergency room co-pays, LASIK surgery, noncovered prescription drugs, over-the-counter medications and drugs, eye-glasses, contact lenses and hearing aids.
Child-care expenses include services provided by a licensed day-care center, pre-school or baby sitter. To be eligible, this service must be rendered for the sole purpose of allowing a single parent, both spouses of a married couple, or both a parent and his/her domestic partner to work or seek an education on a full-time basis.
“Our employees who are enrolled in these plans enjoy a definite tax savings,” said Tom W. Lauman, director of benefits, “a current tax savings that won’t be deferred or paid later like our retirement plan.”
There are important limitations and forfeiture rules to consider when enrolling in these plans. Once enrolled, employees are not allowed to change or cancel their contributions during that year unless they experience a family-status change — such as marriage, divorce or legal separation, birth or adoption of a child, termination or commencement of spouse’s employment, and spouse’s health open enrollment.
An announcement letter and election form were sent to employees’ campus boxes in the last week of October.
This year, the brochure — which provides more detail about the plan benefits, limitations, the reimbursement process and an election form titled “Enrollment Election and Salary Reduction Agreement” — may be found on the human resources Web site, hr.wustl.edu. Click on the “Flex Spending Open Enrollment” link and follow the directions.
Open-enrollment brochures and enrollment forms are also available at the human resources office in North Brookings Hall and the benefits offices at the Medical Campus (4480 Clayton Ave.) and West Campus (Suite 150).
Forms must be returned to the benefits office at Campus Box 1190 or via fax (935-8198). Late applications will not be accepted.
“We encourage those interested to review this brochure carefully,” Lauman said. “We also caution employees to be very conservative and budget only for known or planned expenses for the next year to avoid forfeiture of their remaining balances.
“Those currently participating in the plans for 2004 should expend their remaining balances and submit a claim form and receipts to avoid forfeiture.”
For more information, call 935-5759.