Page 18 - TCW_Benefit Guide_2019 FINAL

FLEXIBLE SPENDING ACCOUNTS (FSAs)

DEPENDENT CARE FSA (DCFSA)
You can contribute up to $5,000 per year ($2,500 if married and filing separate returns) to the
Dependent Care FSA account. The funds must be deposited into your account in order to be
eligible for reimbursement. You can use the money in your DCFSA account to pay for day care
for your eligible dependents so that you and your spouse may work. For information about
eligible dependent care expenses, you may refer to IRS Publication 503 (type IRS Publication
503 into your search engine).

SAMPLE ELIGIBLE EXPENSES:
• Nursery school/ day care center
• Child-care provider
• Babysitter
• Adult day care

For this account, a dependent must be your qualifying dependent under IRS rules, and either:

• A dependent child under the age of 13
• A spouse or other tax dependent who is physically or mentally incapable of self-care and
lives in your home
(Note: you must provide the dependent care provider’s tax ID or social security number when you
submit a claim.)

The Dependent Care FSA is an alternative to the federal income tax credit for dependent care
expenses. This means the limit on expenses you can apply toward the tax credit is further
reduced by any reimbursements from this account during the tax year. Many people find
they’re better off by using the account but, if in doubt, talk to a financial advisor.

For additional information regarding FSA rules, see Publication 969, Health Savings Accounts
and Other Tax-Favored Health Plans at www.irs.gov.

Sign-up for FSA Direct Deposit and you will still receive statements explaining reimbursements.

PayFlex is our FSA plan administrator. More information can be found at www.payflex.com.

“USE IT OR LOSE IT”

Following the end of the calendar year, there is a 2-1/2 month grace period (i.e. you have
until March 15th) to use funds in your FSA (except when moving to the CDHP with HSA
plan for the coming year – see the CDHP with HSA Guide 2019 ), and until June 15th
to file your claims. If you do not incur enough eligible expenses by that deadline, the
remaining balance in your FSA will be forfeited.

Note: Save all of your receipts. If you have an Explanation of Benefits (EOB) from your insurance plan, save that too. When you
submit a claim, you may need to submit the EOB or receipt.

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