November 7, 2016

Dear Colleague,

I am writing to let you know that the enrollment period for 2017 Flexible Spending Accounts (FSAs) begins today, Monday, November 7, and will close on Tuesday, November 29, 2016.

Flexible Spending Accounts (FSAs) allow you to set aside money from your paycheck on a pre-tax basis to pay for medical and child/elder care expenses. That means you do not have to pay federal and, in most cases, state income tax or FICA taxes on those dollars, which means you have more money in your pocket. Most people can save at least 25% on each dollar that is set aside, for expenses they are paying for anyway.

The maximum annual amount you can contribute has increased to $2,600¹ per employee for the Health Care Account; and remains $5,000 per family for the Dependent Care Account.

During the FSA open enrollment period, you can enroll in a Health Care Account and/or Dependent Care Account by logging into Flexnet at http://www.udel.edu/flexnet.

Please keep the following in mind when deciding how much to set aside in your FSA:

• FSAs do not automatically continue from year to year. You must re-enroll each year to continue your participation even if you do not want your deduction amount to change.

• Carefully consider the FSA contribution level appropriate for you and your family; any balance not used during the plan year and subsequent grace period (2.5 months) will be lost. Be on the lookout for quarterly reminders from ASIFlex informing you of your FSA balance.

• The plan year for FSAs is January through December. Once your enrollment is finalized, you cannot change or stop your contribution for the remainder of the plan year unless you have a qualifying family status change (e.g., marriage, divorce, birth/adoption of a child). You have 30 days after the date of the qualifying event to submit a Family Status Change form.

• Health Care Flexible Spending Account participants have the option to elect an FSA Debit Card. This debit card provides a convenient method to pay for eligible out-of-pocket medical expenses at the time of service. The Internal Revenue Service (IRS) has stringent regulations regarding appropriate use of the debit card, including where the card can be used, and when follow-up documentation is required. Use of the card is convenient, but it DOES NOT eliminate all of the paperwork.

You can access your FSA online, through the mobile app or through the ASIFlex 1-800 customer service number.

Please see our web site http://www.udel.edu/003410 for details about FSAs and enrollment. The Human Resources staff is available to help with any questions you have about FSA and enrollment. You can reach a benefits representative by replying to this message.

Sincerely,

Darcell Griffith, CCP
Director, Compensation and Benefits

This message has been approved by Tom LaPenta, Chief Human Resources Officer

¹Provision of the Patient Protection and Affordable Care Act (PPACA).