Page 10 - Murphy Benefits Guide
P. 10
Dependent Care FSA
The dependent care FSA lets you set aside pre-tax dollars to use toward
qualiied dependent care. The maximum amount you may contribute to
the dependent care FSA for 2020 is $5,000 (or $2,500 if married and iling
separately). Funds you contribute to the dependent care FSA function
like a bank account, you need to accumulate the funds before you can use
them.
You are eligible to contribute to the Dependent Care FSA regardless of
your medical plan enrollment.
Grace Period Extension
Per IRS guidelines, you may contribute up to the maximum amounts to
your healthcare FSA and/or dependent care FSA to cover you and your
dependents during the plan year. Pre-tax contributions are withheld from
each paycheck.
It is important to carefully consider the appropriate contribution, as
funds do not roll over from year to year. However, Murphy Company’s
FSA plans include a grace period extension. This means, if you have any
money left over in your FSA at the end of the calendar year, you do not
have to forfeit the balance. Instead, you can use the remaining balance
on expenses incurred from January 1 until March 15 of the following
year. You will have until April 30 of the following year to submit claims
for reimbursement.
Please note, FSA enrollment opportunities occur in December for
Dependent Care FSA the following year.
X Cost of child or adult daycare*
X Nursery school
X Preschool (excluding
kindergarten)
* Eligible dependents are tax
dependent children under age 13;
a tax dependent spouse, parent, or
child unable to care for themselves
10 2020 Benefits Guide
The dependent care FSA lets you set aside pre-tax dollars to use toward
qualiied dependent care. The maximum amount you may contribute to
the dependent care FSA for 2020 is $5,000 (or $2,500 if married and iling
separately). Funds you contribute to the dependent care FSA function
like a bank account, you need to accumulate the funds before you can use
them.
You are eligible to contribute to the Dependent Care FSA regardless of
your medical plan enrollment.
Grace Period Extension
Per IRS guidelines, you may contribute up to the maximum amounts to
your healthcare FSA and/or dependent care FSA to cover you and your
dependents during the plan year. Pre-tax contributions are withheld from
each paycheck.
It is important to carefully consider the appropriate contribution, as
funds do not roll over from year to year. However, Murphy Company’s
FSA plans include a grace period extension. This means, if you have any
money left over in your FSA at the end of the calendar year, you do not
have to forfeit the balance. Instead, you can use the remaining balance
on expenses incurred from January 1 until March 15 of the following
year. You will have until April 30 of the following year to submit claims
for reimbursement.
Please note, FSA enrollment opportunities occur in December for
Dependent Care FSA the following year.
X Cost of child or adult daycare*
X Nursery school
X Preschool (excluding
kindergarten)
* Eligible dependents are tax
dependent children under age 13;
a tax dependent spouse, parent, or
child unable to care for themselves
10 2020 Benefits Guide
