Page 15 - 2015/2016 Benefits Guide
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Dependent Care Reimbursement Account
The Dependent Care Reimbursement Account allows you to deposit up
to $5,000 annually in an account on a pre-tax basis.
How It Works
Expenses that are eligible for reimbursement through the Dependent
Care Reimbursement Account (DCRA) include expenses you incur for
your dependents so that you can work. These types of expenses include
payments to day care centers, elder care, after-school care, or baby sitting
in your home or someone else’s home as long as the care provider is not
another child of yours under age 19, or anyone else for whom you claim a
tax exemption on your federal income tax return. Dependents are deined
for this purpose as children under age 13 or anyone age 13 or over who is
mentally or physically handicapped and relies on you for inancial support.
DCRA is also subject to speciic Internal Revenue Service Regulations
and works very much like the Health Care Reimbursement Account. You
may deposit pre-tax dollars into your account each pay period to pay for
eligible expenses and be reimbursed from your account, tax free. Regular
scheduled payments for reimbursement of dependent care services are
available. By completing the automatic dependent care request form, you
will be able to receive monthly reimbursements automatically, instead of
having to submit a receipt each month.
HSA and FSA: Not Allowed
IRS rules prohibit an employee from having a Healthcare FSA and an
HSA at the same time. In addition, you may not contribute to an HSA
while your spouse is contributing to an FSA through their employer.
Conversely, a spouse may not contribute to an FSA while you are
contributing to an HSA.
The IRS requires participants in the HSA plan to use only the HSA plan
for healthcare expenses. That means that HSA participants can use the
company’s FSA only for dependent child care expenses.
If you are used to using the FSA for healthcare related expenses, redirect
those dollars for 2015 as voluntary contributions into your HSA account
and use the FSA only for dependent child care expenses.
Benefits Guide
Dependent Care Reimbursement Account
The Dependent Care Reimbursement Account allows you to deposit up
to $5,000 annually in an account on a pre-tax basis.
How It Works
Expenses that are eligible for reimbursement through the Dependent
Care Reimbursement Account (DCRA) include expenses you incur for
your dependents so that you can work. These types of expenses include
payments to day care centers, elder care, after-school care, or baby sitting
in your home or someone else’s home as long as the care provider is not
another child of yours under age 19, or anyone else for whom you claim a
tax exemption on your federal income tax return. Dependents are deined
for this purpose as children under age 13 or anyone age 13 or over who is
mentally or physically handicapped and relies on you for inancial support.
DCRA is also subject to speciic Internal Revenue Service Regulations
and works very much like the Health Care Reimbursement Account. You
may deposit pre-tax dollars into your account each pay period to pay for
eligible expenses and be reimbursed from your account, tax free. Regular
scheduled payments for reimbursement of dependent care services are
available. By completing the automatic dependent care request form, you
will be able to receive monthly reimbursements automatically, instead of
having to submit a receipt each month.
HSA and FSA: Not Allowed
IRS rules prohibit an employee from having a Healthcare FSA and an
HSA at the same time. In addition, you may not contribute to an HSA
while your spouse is contributing to an FSA through their employer.
Conversely, a spouse may not contribute to an FSA while you are
contributing to an HSA.
The IRS requires participants in the HSA plan to use only the HSA plan
for healthcare expenses. That means that HSA participants can use the
company’s FSA only for dependent child care expenses.
If you are used to using the FSA for healthcare related expenses, redirect
those dollars for 2015 as voluntary contributions into your HSA account
and use the FSA only for dependent child care expenses.
Benefits Guide
