Important News: Flexible Spending Accounts (FSA)
• For the 2006 flexible spending plan year, claims need to be submitted to Automated Data Processing (ADP) for eligible expenses that employees want to claim from their 2006 FSA accounts. Reimbursements for 2006 claims will be mailed to home addresses unless the participant arranges with ADP for direct deposit reimbursements. Welcome Kits are being sent by ADP to participants’ home addresses regarding the reimbursement process and how to access account information on-line through the Yale Benefits Self-Service web site.
• Participants with unused balances in their 2005 flexible spending accounts (FSA), who are still employed at Yale as of December 31, 2005, will be able to incur eligible expenses until March 15, 2006, the end of the IRS “grace period extension” to “use it” before “losing it.” Claims reimbursed from a 2005 FSA cannot be resubmitted to ADP for reimbursement from a 2006 FSA. That is, the employee cannot be reimbursed more than once for the same eligible expense. These 2005 claims must be sent to and received by the Benefits Office no later than April 30, 2006, to avoid forfeiting the balance. Reimbursements for 2005 claims will be made in the employee’s paycheck.