Flexible Spending Accounts (FSAs)

Enrolling in an FSA saves you money by lowering your overall taxable income while simultaneously creating a reserve of funds for your eligible healthcare and dependent care out-of-pocket expenses. You elect the annual amount you want to contribute, which will be deducted evenly per paycheck for the rest of the plan year. Then, use your FSA to pay for eligible out-of-pocket costs incurred during the plan year.

Your FSA options

Commuter Benefit

The Qualified Transportation Benefit, or Commuter Benefit, allows you to set aside pre-tax dollars for eligible mass transit or parking expenses.

What’s the fine print?

Healthcare and Dependent Care FSA

The 2025 IRS contribution limit is $3,300 for the healthcare FSA and $5,000 for the dependent care FSA.* UMG allows a grace period of 2.5 months after the plan year ends to utilize any remaining FSA funds, so participants have until March 15 of the following year. Any funds not used after this grace period will be forfeited.

Commuter Benefit

The 2025 IRS contribution limit is $325 per month for both public transit and parking. Any unused balance will roll over from month to month while actively employed. Upon termination, you have 90 days to use your remaining balance for your transit commuter card.

Enrolling in an FSA

You can enroll in these accounts during new hire enrollment, if you have a qualifying life event, or during annual enrollment. Please note that you will need to actively enroll each year that you want this benefit, as it does not carry over.

Visit the IRS.gov for full rules and regulations.

*Pre-tax dependent care FSA elections for “highly compensated employees” earning over $150,000 annually are capped at $2,500 in 2023.