Only set aside pretax dollars for expenses that you know that you are going to incur during the plan year. Any monies left over in your Health Care Spending Account OR your Dependent Care Expense Account at the end of the plan year are forfeited. HOWEVER, IF YOU PLAN WISELY, YOU SHOULD NOT HAVE ANY MONEY LEFT IN YOUR ACCOUNT AT THE END OF THE PLAN YEAR. The national average of forfeited dollars in participants’ accounts is approximately $2.00.
Please remember that you may not transfer elections from one account to another. For example, elections to your Health Care Spending Account may be used only for eligible health expenses; no amount would be available for eligible dependent care expenses.
| HEALTH CARE SPENDING ACCOUNT |
DEPENDENT CARE SPENDING ACCOUNT |
| You may elect to set aside money each plan year to pay for eligible health care expenses (maximum amount designated by your employer’s Summary Plan Description). The pretax dollars deducted from your paycheck will be used to reimburse you for eligible health care expenses, which are not covered by any insurance plan. Some examples of eligible health care expenses are:
° Acupuncture
° Hearing Devices
° Deductibles
° Prescription Glasses
° Copays
° Prescription Sunglasses
° Coinsurance Payments
° Hospital Bills
° Contact lenses
° Lasik Vision Correction
° Chiropractic Care
° Prescription Drugs
° Psychiatric Care
° Psychologist Fees
° Dental Fees (excluding
services for cosmetic
purposes)
° Approved Over the Counter
Medications
For a complete list of eligible expenses, please visit the IRS website at: http://www.irs.gov/pub/irs-pdf/p502.pdf. You may set aside pretax dollars to pay for the eligible health care expenses of any member of your immediate family even if they are not covered under your insurance plan.
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You may elect to set aside money each plan year to pay for eligible dependent care expenses that enable you to work full-time (maximum amount designated by your employer’s Summary Plan Description). The pretax dollars deducted from your paycheck will be used to reimburse you for eligible dependent care expenses.
An eligible dependent is any individual in your family who is under age 13 who you can claim as a dependent on your federal income tax return, any other dependent who is mentally or physically incapable of caring for him or herself; or your spouse, if your spouse is physically or mentally incapacitated.
Some examples of eligible dependent care expenses are:
° Before/After School
° Programs
° Nursery Schools
° Day Care Centers
° Day Camps
° Dependent Care Centers
(providing day care, not
residential care, for
dependent adults)
NOTE: Registration fees for the above are not eligible dependent care expenses.
Remember that dependent care providers must display their tax identification number or social security number on all receipts.
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