Flexible Spending Accounts

Healthcare, Limited Purpose, Dependent Care

The College offers benefit eligible employees (.50 FTE or greater) the opportunity to establish a health care, limited purpose, and/or dependent care spending account to cover certain expenses with federal tax-free dollars (Pennsylvania State and local taxes still apply). Use of the accounts is voluntary and is subject to IRS regulations.

Each year, employees decide whether to enroll or re-enroll, and how much to contribute to these accounts for the following year. New employees may begin to participate on the first day of benefits eligibility.

Health Care Flexible Spending Account

A Health Care Flexible Spending Account (HCFSA), administered by Inspira Financial (formerly known as PayFlex), provides you with the ability to save money on a pre-tax basis to pay for any IRS-allowed medical, prescription drug, dental or vision expenses that are not otherwise covered by insurance. Examples of these types of expenses include:

  • Deductibles, co-payments, and coinsurance
  • Expenses for medical services or supplies not paid for by your insurance plan
  • Dental, vision, and hearing care expenses not otherwise paid by insurance
  • Over the counter medications, including feminine menstrual care products (no prescription required); visit the Inspira Financial website for a list of eligible expenses

Your annual contribution of up to the maximum permitted by the IRS ($3,300 for 2025) is divided by your number of pay periods and that amount will be deducted each pay period on a pre-tax basis, reducing your taxable income. The amount you elect may not be changed or revoked during the plan year unless you experience a qualifying life event. You may not transfer funds between a Health Care FSA and a Dependent Care FSA.

Carryovers: Unused HCFSA balances of up to the maximum permitted by the IRS (20% of the annual election maximum, or $660 for 2025) will carry over to the next plan year. Unused balances that exceed the $660 carryover limit will be forfeited (use it or lose it).

Limited Purpose Flexible Spending Account

If you enroll in the HDHP or Basic HDHP medical plan and have a Health Savings Account (HSA), IRS eligibility rules for HSAs do not allow you to have a HCFSA.  If you enroll in either HDHP and would like an FSA, a Limited Purpose FSA (LPFSA) is the solution.  The LPFSA is also administered by Inspira Financial and is available for reimbursement of dental and vision expenses only.

In every other way the LPFSA works just like the HCFSA, but eligible expenses are limited to eligible dental and vision expenses that are not paid or covered by insurance.  The Limited Purpose FSA will not reimburse any medical or pharmacy expenses.  If you want to want to maximize your HSA savings and watch your HSA balance grow, a LPFSA may be a valuable benefit to you.  You may contribute up to the maximum permitted by the IRS ($3,300 for 2025) into a LPFSA.

Carryovers: Unused LPFSA balances of up to the maximum permitted by the IRS (20% of the annual election maximum, or $660 for 2025) will carry over to the next plan year. Unused balances over the $660 carryover limit will be forfeited (use it or lose it).

Dependent Care Flexible Spending Account

A Dependent Care Flexible Spending Account (DCFSA), administered by Inspira Financial (formerly known as Payflex), provides you with the ability to set aside money on a pre-tax basis for day care, before/after care, preschool/nursery school, and summer day camp expenses for your child, disabled parent or disabled spouse.  To use your DCFSA funds, you must be working.  If you are married, your spouse must either be working, looking for work, a full-time student, or incapable of self-care.

Generally, expenses will qualify for reimbursement if they are the result of care for:

  • Your children under the age of 13, for whom you are entitled to a personal exemption on your federal income tax return.
  • Your spouse or other dependent, including parents, who are physically or mentally incapable of self-care.

For the 2025 Plan Year, the maximum amount that you may contribute to a DCFSA is $5,000. The IRS has set the maximum allowable contribution per calendar year for a DCFSA as follows:

  • $5,000 for a married couple filing jointly
  • $5,000 for a single parent
  • $2,500 for a married person filing separately

Carryovers are not permitted for DCFSA; unused funds not claimed prior to the end of the run-out period (through March 31 each year) will be forfeited (use it or lose it).  Please note that Inspira Financial does not issue a debit card for use with the DCFSA, you must submit receipts for reimbursement via the Inspira Financial member portal or via the mobile app.

Annual Re-enrollment and Claims Submission

Employees must re-enroll in these flexible spending accounts during each annual open enrollment period, through the Benefitfocus portal, for these benefits to continue for the subsequent benefit plan year.  Your election from the current year will not carryover to the new plan year.

Members enrolled in these benefits will have until March 31 (the claims run-out period) to submit claims for reimbursement incurred between January 1 and December 31 of each calendar year.  With the exception of the permissible IRS allowed carryover amounts for the HCFSA and LPFSA, unused balances in these accounts will be forfeited if not claimed before March 31 (use it or lose it).

Inspira Financial

Internet Services

Visit the Inspira Financial member portal or download the mobile app to have access to view:

  • Your account balance,
  • Claims processing,
  • Downloadable participant forms (including claim forms),
  • Summary Plan Description for Swarthmore College,
  • Participant reimbursement history & dates of payment
  • List of eligible/ineligible expenses for health care and spending care dependent accounts

Customer Service

Inspira Financial's website is designed to provide you with the information you may want to know about your flexible spending account(s). Should you need to contact them, they can be reached from 8:00 AM to 8:00 PM on Monday through Friday at the Customer Service Center by calling (844) 729-3539.