Page 43 - 2021 Team Member Benefit Guide - English

Dependent Care FSA

The Dependent Daycare FSA offers a Forfeiture of Benefits
convenient way to use pre-tax dollars to pay Be conservative in estimating health and
for eligible child and elder care expenses dependent care expenses. You will forfeit
(generally expenses you incur so that you can amounts remaining in your Health Care and/
work). Enrollment is not automatic. You must or Dependent Care FSA account(s) for which
actively enroll in the Dependent Care FSA you are unable to claim reimbursable expenses.
each year. Funds DO NOT roll over from year-to-year.
Unlike an HSA, you must use the funds in your
Contributions are deducted from each FSA by December 31, 2021, or you lose them.
paycheck and deposited into an account that Deadline for claims submission: All claims for
may be accessed with a claim form. reimbursement for the 2021 plan year must be
filed with WageWorks prior to March 31, 2022.
The Dependent Daycare FSA has IRS Expenses You Can Pay with a
limitations of $5,000 per year and further Dependent Daycare FSA:
limitations for certain married participants. Child Care (while you work) for child(ren) under
Your taxable income will be reduced by the age 13, provided by
amount you set aside for your FSA every pay ; After school program
period. It is important to estimate the amount ; Daycare center
of your out-of-pocket expenses carefully and ; An individual who is NOT also your tax
plan your payroll contributions accordingly. dependent
; Summer day camp
Unlike Health FSA, the Dependent Care FSA
can only reimburse you for amounts you have Elder Care (of your tax dependent)
on deposit as you incur claims. You must ; In your home
incur reimbursable Dependent Care expenses ; Adult daycare
during the 2021 plan year or during your
benefit period if enrolling as a newly eligible NOT REIMBURSABLE:
employee. 4 Health care expenses of your child or other
dependent
Before you enroll in Dependent Day- 4 Babysitting for non-work related activities
care FSA, note this account is NOT 4 Dance lessons
for reimbursement of dependent 4 Tutoring services
health care expenses! 4 Field trips
Do not enroll in this plan unless you expect 4 Dog walking
to incur eligible expenses, such as daycare
services that can be substantiated with a
receipt.
Also consider: Compare the Dependent
Daycare FSA to the Federal dependent care
tax credit to see which approach provides you
with the better tax advantage. In some cases,
you may be able to split your eligible expenses
between a Dependent Care FSA and the
tax credit. You may wish to consult your tax
advisor.

Dave Rush, COO-East 42
Charlotte, NC 42