The university offers Flexible Spending Accounts (FSA) and a Health Savings Account (HSA) to help employees pay for eligible medical expenses.
The university offers two types of Flexible Spending Accounts (FSA): a Health Care Account and a Dependent Day Care Account. These accounts are managed by Optum Financial. Any money left at the end of the FSA period cannot be refunded in accordance with federal law. If your spouse's employer offers flexible spending accounts, you and your spouse may both allocate the IRS maximum amount to each of your Health Care FSAs and a combined IRS maximum amount to your Dependent Day Care FSAs. This includes spouses who both work for OU.
Healthcare and dependent day care reimbursement accounts can decrease the amount of taxes you pay on your income by allowing you to set aside pre-taxed income for eligible expenses. An FSA is authorized by the IRS and available through your employer.
| Topic | Description |
|---|---|
| Enrollment | You must re-enroll every year during Open Enrollment if you wish to continue an FSA. |
| 2026 Limits | You may allocate a maximum of $3,400 to your healthcare FSA and a maximum of $7,500 to your dependent daycare FSA. If your spouse also has flexible spending accounts, you and your spouse may both allocate the maximum $3,400 amount to each of your health care FSAs and a combined total of $7,500 to your dependent day care FSAs. This includes spouses that both work at OU. |
| Reimbursements | As you incur healthcare or dependent day care expenses throughout the year, you may submit a claim for those expenses to get reimbursed with tax-free dollars from your FSA account. A debit card is available for healthcare expenses. |
| Eligible Items | Take a look at the eligible expenses for either a healthcare or a dependent day care account. |
| Documentation Requirement | As required for all FSA providers, Optum Financial may request documentation from you to remain compliant with IRS regulations. Remember, keep your receipts and Explanations of Benefits from your providers for every claim you make to Optum Financial. |
| Deadline Reminders | You may incur health care FSA expenses until March 31 of the following year and dependent care expenses until Dec. 31 of the plan year. You have until April 15 to submit eligible claims for both. Reminder: Any money left at the end of the FSA period cannot be refunded according to federal law. |
A healthcare FSA account reimburses you for out-of-pocket expenses, meaning those expenses that are not covered by your medical, dental, prescription, or vision programs. These expenses include deductibles, co-pays, coinsurance, and certain over-the-counter (OTC) expenses.
Upon enrolling in a healthcare FSA, Optum Financial will send a debit card, called the Optum Financial Card. The Optum Financial Card is a debit card that electronically accesses your healthcare account to pay for eligible expenses when you check out at a store or medical provider.
The dependent day care FSA account reimburses you for expenses you incur to allow you and, if married, your spouse to work. These expenses include day care, before-and after-school programs, nursery school or preschool, summer day camp, and even adult day care.
For 2026, you may allocate a maximum of $7,500 to your Dependent Care FSA.
Download the Optum Financial DCFSA Quick Guide (pdf) for more information about Dependent Care Flexible Spending Account.
NOTE: Reimbursement timing and plan years are different than the health care FSA.
Employees who need custodial care for an eligible dependent so that the employee and spouse can work (or go to school full-time) qualify for a dependent care reimbursement account. If married, the spouse must work or be a full-time student. The annual amount submitted for reimbursement cannot exceed the amount earned by the lower paid spouse. For a full-time student, an income of $200 per month for one dependent, $400 for two or more, is assumed.
Expenses must be for the care of a dependent that is 12 years old or younger and the employee must be entitled to a deduction for this dependent under IRS Code Section 151(e) or expenses for care must be for a spouse or dependent who is physically or mentally incapable of caring for him or herself. Expenses for services needed to run the home by a housekeeper or maid are covered if they are partly for the well being and protection of the dependent. Expenses for food, clothing, education or entertainment for the dependent are not covered. Kindergarten is not an eligible expense.
Payment for services cannot be made to a person who is claimed as a dependent or to a child if the child is under age 19. The provider can be a relative who is not a dependent, even if the provider lives in the employee’s home. If the services are provided for a disabled spouse or dependent outside the employee’s home, the disabled spouse or dependent must spend at least eight hours each day in the employee’s home. A provider who cares for dependents who are under age 13 and who care for more than six individuals must comply with all state and local laws at the provider's location.
Eligible types of daycare providers are:
In order to claim expenses as a tax credit, the social security number or federal tax number of the provider must be submitted.
NOTE: Church-sponsored day care centers are not required to provide a tax number. Dependent care expenses must satisfy eligible criteria for a dependent care reimbursement account as outlined in Section 129 of the IRS code.
There is a $7,500 maximum contribution limit per calendar year. Working couples can contribute a combined total of $7,500 to this account. Deductions cannot exceed the earned gross income of the lower paid spouse unless the spouse is a full-time student or is disabled. Reimbursements cannot exceed the amount that is in the account when the request is made. Participants have 90 days after the end of the plan year to submit all claims. For dependent daycare, the service deadline remains December 31 of the plan year; expenses must be incurred within the current calendar year. Kindergarten is not an eligible expense.
Employees who enroll in the High Deductible Health Plan will receive a Health Savings Account (HSA) through HSA Bank to which both the employee and employer can contribute pre-tax money. The funds in the HSA can be used to pay for eligible medical expenses and gives members control over how their medical care dollars are spent. Reimbursement for eligible medical expenses are tax-free and unused funds roll over from year to year. This allows members to plan for future expenses as long as they remain in the plan.
At the start of the year, the university allocates a fund to help the participant pay for medical expenses covered by the plan. The employee can also contribute to this fund through payroll deduction. NOTE: The Health Savings Account is not fully funded at the beginning of the year. These contributions are made on a prorated basis per pay period.
The fund can be used to help pay for eligible medical expenses. Employees cannot have both a health care FSA and a Health Savings Account. To be eligible for an HSA, you must meet the following requirements, as defined by the IRS:
Other restrictions and exceptions may also apply. We recommend that you consult a tax, legal or financial advisor to discuss your personal circumstances. Visit HSA Bank to manage your account.
