Flexible Spending Account & Health Savings Account
Save on Eligible Health and Childcare Expenses
Flexible Spending Accounts (FSAs)
The Arkansas State University System offers Flexible Spending Accounts (FSAs) to benefits-eligible employees, administered through Optum Financial / ConnectYourCare (CYC).
FSAs allow you to set aside pre-tax money to pay for eligible healthcare and dependent care expenses — helping you save money and reduce taxable income.
How the FSA Works
Once enrolled, you’ll receive an Optum payment card that can be used at IRS-approved vendors for eligible expenses.
You can also check your account balance and submit claims online here.
Important Deadlines
- Plan Year Grace Period: You may incur eligible expenses until March 15 following the end of the plan year.
- Submission Deadline: All expenses must be submitted by March 31.
- If You Retire or Terminate Employment: Your last day of work is the last day you can incur expenses. You have 60 days after termination to submit claims.
Qualified Expenses
FSAs help you tax-shelter income for qualified medical and childcare expenses. The money you contribute is not subject to federal, state, or FICA taxes.
Two Types of FSAs:
- Health Care FSA: Contribute between $240 and $3,400 per employee annually for eligible out-of-pocket healthcare expenses.
- Dependent Day Care FSA: Contribute between $240 and $7,500 per household annually for childcare (daycare) costs.
Enrollment
- New employees may enroll within 31 days of hire for the current calendar year.
- Current employees must enroll during Open Enrollment each fall for the next calendar year.
- Unused funds not claimed by the deadline are forfeited per IRS rules.
Health Savings Account (HSA)
Save and Grow Tax-Free for Medical Expenses
A Health Savings Account (HSA) is available to employees enrolled in the Health Savings Plan and allows you to save and grow savings tax-free for medical expenses.
The HSA is administered through ConnectYourCare, where you can manage your account and submit claims online here.
How the HSA Works
- Once you’re enrolled in the Health Savings Plan, you’re eligible to open an HSA.
- You’ll receive a debit card to pay for eligible healthcare expenses.
- You can contribute pre-tax dollars directly from your paycheck.
- Funds roll over each year — your HSA money is yours to keep, even if you change jobs or retire.
2026 IRS Maximum Contribution Limits
- Individual Coverage: Up to $4,400
- Family Coverage: Up to $8,750
- Age 55 or older: Additional $1,000 “catch-up” contribution
Why Consider an HSA or FSA?
Both accounts help you save money on eligible expenses, but they differ in flexibility and eligibility:
| Feature | FSA | HSA |
| Eligibility | Any benefits-eligible employee | Must be enrolled in the Health Savings Plan
|
| Funds Roll Over | Limited (grace period applies) | Yes, funds roll over yearly
|
| Ownership | Employer-sponsored | Employee-owned
|
| Contribution Source | Pre-tax payroll deductions | Pre-tax payroll deductions
|
For Optum Financial member login or additional resources, click here or see below.
Frequently Asked Questions
You can contribute up to $3,400 into a Healthcare FSA for eligible health, dental, vision, or certain over-the-counter expenses. These expenses can be for you or your eligible tax dependents, whether or not they are covered on the health plan. You must re-enroll every year.
You can contribute up to $7,500 (per household) into a Dependent Care FSA for child and adult day care expenses for eligible dependent expenses that allow you and, if you are married, your spouse to work, but you must re-enroll every year.
Yes. The Classic Plan and Premier Plan may be paired with a health care Flexible Spending Account (FSA) that can be used for qualified medical expenses during the plan year. You choose the amount to contribute and then make pre-tax contributions up to the annual IRS limits. The funds in a health care Flexible Spending Account do not roll over from year to year.
No. Unless your current card has an expiration date in 2025, you should use your card until it expires.
For more information view the Optum Financial Plan FSA Document
.
A Health Savings Account (HSA) is a type of personal savings account you can set up to pay certain health care costs. An HSA allows you to put pre-taxed money away to pay for qualified medical expenses, like deductibles, copayments, coinsurance, and more. With an HSA-eligible plan, the monthly premium is lower, but you pay more out-of-pocket health care costs yourself before your plan starts to pay its share.
The annual maximum contribution for individual coverage for 2026 is $4,400. The maximum contribution for family coverage for 2026 is $8,750.
Individuals age 55 and older can make an additional $1,000 catch-up contribution.
FSAs and HSAs both offer tax benefits and have annual contribution limits.
Funds in an HSA roll over year to year. There is no “use it or lose it” rule.
FSAs are “use it or lose it.” That means you’ll lose any funds you don’t spend by the end of the grace period.
You can use your FSA to cover eligible healthcare costs at the start of the year. The entire amount is available on day one.
With the HSA, you cannot spend more than the funds deposited in their HSA. However, you can save receipts for qualified medical expenses and file for reimbursement after your balance has grown.
You can’t contribute to an HSA and an FSA in the same year.
No. You are not required to contribute to a Health Savings Account.
ASU System will contribute $500 for employee coverage or $1,000 for family coverage if you are enrolled in the Health Savings Plan with Health Savings Account. Half of these health plan contributions will be deposited into the HSA in mid-January and half will be deposited in mid-August. Contributions for employees hired Jan. 1 – July 31, will be $250 for individuals and $500 for families. Employees hired Aug. 1 – Dec. 31 will not receive a contribution.
If you leave Arkansas State University, you won’t lose your HSA. Your HSA and its funds, including the funds your employer contributed, are owned by you.
No. You’re eligible to contribute to an HSA only if you are enrolled in the Health Savings Plan. If you are enrolled in the Classic or Premier Plan, you are eligible to contribute to the healthcare FSA.
Yes. You may use the money in your HSA to pay your spouse’s or other eligible dependent’s eligible expenses.