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2020
Thompson Coburn Enrollment Guide
DEPENDENT CARE FLEXIBLE
SPENDING ACCOUNT (FSA)
A dependent care lexible spending account (FSA) provides you with the
ability to save money on a pre-tax basis for day care expenses for your
child, disabled parent, or spouse. A participant is only eligible to have
a dependent care account if he or she pays dependent care expenses in
order to be able to work. If married, the participant’s spouse must also
work, go to school full time, or be 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
A person of any age whom you claim as a dependent on your federal
income tax return and who is mentally or physically incapable of
caring for himself or herself
A participant in a dependent care FSA will not be able to submit for
reimbursement of any expenses incurred during a leave of absence
Eligible expenses include payments to day care centers, preschool costs
(up to, but not including, irst grade), after school care, and elderly care.
The cost of babysitting in your home or someone else is permitted—as
long as the person providing the care is not one of your own children
under age 19 or anyone else for whom you claim a tax exemption on your
federal income tax return. You must provide the social security or tax
ID number of the care provider to be reimbursed from your dependent
care FSA.
You may deposit up to $5,000 on a pre-tax basis ($2,500 if you are
married and ile taxes separately) into your dependent care FSA. Pre-tax
contributions are withheld from each paycheck. A $10 minimum per pay
period is required for participation in the dependent care FSA.
Plan Carefully for Your FSA
IRS rules stipulate that you cannot roll over unspent amounts from one
year to the next. Therefore, any remaining funds in your account that are
not spent by the end of the calendar year will be forfeited. This is known
as the “use it or lose it” rule. Keep it in mind, take a little time to plan,
and do not contribute more in your account than you are willing to spend.
Expenses may be incurred through December 31, 2020. Claims may be
submitted for reimbursement through March 31, 2021. 13
Thompson Coburn Enrollment Guide
DEPENDENT CARE FLEXIBLE
SPENDING ACCOUNT (FSA)
A dependent care lexible spending account (FSA) provides you with the
ability to save money on a pre-tax basis for day care expenses for your
child, disabled parent, or spouse. A participant is only eligible to have
a dependent care account if he or she pays dependent care expenses in
order to be able to work. If married, the participant’s spouse must also
work, go to school full time, or be 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
A person of any age whom you claim as a dependent on your federal
income tax return and who is mentally or physically incapable of
caring for himself or herself
A participant in a dependent care FSA will not be able to submit for
reimbursement of any expenses incurred during a leave of absence
Eligible expenses include payments to day care centers, preschool costs
(up to, but not including, irst grade), after school care, and elderly care.
The cost of babysitting in your home or someone else is permitted—as
long as the person providing the care is not one of your own children
under age 19 or anyone else for whom you claim a tax exemption on your
federal income tax return. You must provide the social security or tax
ID number of the care provider to be reimbursed from your dependent
care FSA.
You may deposit up to $5,000 on a pre-tax basis ($2,500 if you are
married and ile taxes separately) into your dependent care FSA. Pre-tax
contributions are withheld from each paycheck. A $10 minimum per pay
period is required for participation in the dependent care FSA.
Plan Carefully for Your FSA
IRS rules stipulate that you cannot roll over unspent amounts from one
year to the next. Therefore, any remaining funds in your account that are
not spent by the end of the calendar year will be forfeited. This is known
as the “use it or lose it” rule. Keep it in mind, take a little time to plan,
and do not contribute more in your account than you are willing to spend.
Expenses may be incurred through December 31, 2020. Claims may be
submitted for reimbursement through March 31, 2021. 13
