Flexible Benefits

Consumer Account Options

The Library offers four different types of consumer accounts: Medical FSA, Dependent Care FSA, Limited Purpose FSA, and HSA. These benefit options are designed to help participants save money by lowering their taxable wage base. All four of the options described below are savings options using pre-tax money on eligible benefit expenses.

Below is a description of the options along with attachments to provide additional information on these consumer account options. All four options are managed by UMR, registration instructions are included below.

Please reach out to Elizabeth Kessler at [email protected] or Mandie Fischer at [email protected] for questions.

Medical Flexible Spending Account (FSA)

The medical FSA allows the participants to set aside a portion of their before-tax income to pay for qualified health care expenses. Typically, this includes medical, dental, vision, and prescription costs. For the 2024 – 2025 plan year the IRS limit for Medical FSA funds is $3,200. FSA funds are use-it-or-lose-it so expenses must be incurred during the plan year. After the plan year, there is a 90-day period to submit substantiation or invoices for expenses incurred during the plan year.

Dependent Care Flexible Spending Account (DCFSA)

For the 2024 – 2025 plan year, eligible participants may contribute up to $5,000 to cover eligible dependent care expenses ($2,500 if you and your spouse file separate tax returns). These expenses can include childcare, adult dependent care, preschool, summer day camp, before- or after-school programs, and child or adult day care. A dependent child must be 12 years old or younger. For an adult to qualify, they must be physically/mentally incapable of caring for themselves and qualifies as the participant’s federal tax dependent.

To be eligible for a DCFSA, the participant (and their spouse if married) must need the care to work, look for work, or attend school full-time. FSA funds are use-it-or-lose-it so expenses must be incurred during the plan year. After the plan year, there is a 90-day period to submit invoices for expenses incurred during the plan year.

Limited Purpose Flexible Spending Account (LPFSA)

For those participants enrolled in the Highly Deductible Health Plan (HDHP), they have the option to participate in the LPFSA. The LPFSA can be used for eligible dental and vision expenses only. This can be a useful option for those interested in preserving their HSA funds. For the 2024 – 2025 plan year the IRS limit for LPFSA funds is $3,200. FSA funds are use-it-or-lose-it so expenses must be incurred during the plan year. After the plan year, there is a 90-day period to submit substantiation or invoices for expenses incurred during the plan year.

Health Savings Account (HSA)

The HDHP benefit option comes with a type of savings account called an HSA. The HSA lets the participant set aside pre-tax dollars to help offset the annual deductible and pay for qualified health care expenses. Typically, this includes medical, dental, vision, and prescription costs. The Library provides an employer match of $500 annually for individual coverage and $1,000 for family coverage. The amount is prorated the first year. Participants can also choose to contribute. The IRS does set an annual contribution limit. This is the maximum amount that can be contributed to an HSA account for the calendar year and includes both the employer and employee contributions.

The money in the HSA account does not expire and will remain in the participant’s name even after employment. 

The HSA account has a unique feature that allows a participant to invest funds and grow the money in the account. This can be a useful feature when saving for retirement. For more information, please see the attachments below.  

For more information, please visit the UMR website.