Page 145 - 2022 Washington Nationals Flipbook

MLB LWIP & Nationals Welfare
Plans and Summary Plan Description

while you are not working (e.g., sick day, vacation, etc.) do not qualify for reimbursement.
However, expenses incurred during certain “short” or “temporary” absences for illness or
vacation may be eligible for reimbursement if you are required to pay for dependent care on a
weekly or longer basis. Also, if you work part-time, you do not have to allocate expenses
between time worked and time not worked if you are required to pay for care on a weekly or
longer basis.

Not all expenses qualify as dependent care assistance. Only expenses that are excludable
from income under federal tax may qualify as dependent care assistance. See Table 2, below,
for some examples of expenses that qualify.

Table 2: Expenses that Qualify for Reimbursement from a
Dependent Care Assistance Account

 Before and after school programs
 Care in your home or someone else's home (as long as the care giver is not your spouse

or your child who is under age 19, even if you no longer claim that child as a dependent)
 Care for a disabled dependent provided outside your home as long as the dependent is a

child under age 13 or is in your home for at least eight hours a day
 Child care center (if the center provides care for more than six individuals, other than

residents, it must comply with all applicable state and local laws)
 Nursery school or pre-school
 Summer camp, including a camp that specializes in a particular activity (such as a soccer

or computer camp, but not overnight camp)
 Household services, if attributable to the care of your dependent
 Agency fees, application fees or deposits, if you are required to pay these expenses in

order to obtain the related care

Please contact the Plan Administrator before enrolling in the Plan to confirm that the
expenses for which you will seek reimbursement will qualify as dependent care assistance.

You will not be reimbursed for any expenses that are (i) not incurred in the Plan Year, (ii)
incurred before or after you are eligible to participate in the Plan, (iii) attributable to a tax
credit you take for the same expenses, or (iv) covered, paid or reimbursed from any other
source.

Generally, amounts reimbursed from your Account are tax-free to you. However, federal law
provides that the amount excluded from your gross income cannot exceed the lesser of:

 $5,000 ($2,500 if you are married and filing separate federal income tax returns);
 Your annual income; or
 Your spouse’s annual income.

If your spouse is (1) a full-time student for at least five months during the year, or (2) physically
and/or mentally handicapped, there is a special rule to determine his or her annual income. To
calculate the income, determine your spouse’s actual taxable income (if any) earned each month

Page 47