Dependent Care FSA is not used for reimbursement of medical expenses. The Dependent Care FSA is to reimburse for work related dependent day-care expenses.
The Dependent Care Flexible Spending Account (FSA) enables the employee to pay for out-of-pocket, work-related dependent day-care expenses with pre-tax dollars. If the employee is married, the employee may use the account if the employee and their spouse both work, or in some situations if the employee's spouse goes to school full-time. Single employees may also use the account. Visit irs.gov or ASIFlex for additional information.
The annual maximum contribution per household is $5,000, or $2,500 if married but filing taxes separately. The Dependent Care FSA can be used for:
Funds available only as contributed
$120/year minimum contribution
$2.26/month fee for one or both types of FSA
It is important for the employee to decide how much to contribute to their Dependent Care FSA before the Plan Year begins. The employee may forfeit amounts to the State of Montana if the employee does not fully use the contributions that have been made. See the dependent care flex calculators on the ASIFlex website for assistance in determining your appropriate contribution amount.
During the course of the Plan Year, the employee may submit requests for reimbursement of expenses the employee has incurred. Expenses are considered "incurred" when the service is performed, not necessarily when it is paid. The employee may only be reimbursed from the Dependent Care FSA to the extent that there are sufficient contributions in the FSA to cover the expense.
Employees have 120 days after the end of the Plan Year to submit claims for dependent care expenses. A terminated employee has 120 days after the end of the Plan Year to submit claims for dependent care expenses. Failure to submit claims within 120 days will result in any available contributions being forfeited.
See the Wrap Plan Document for more details about the ASIFlex flexible spending accounts. Contact ASIFlex if you have any questions regarding eligible expenses or how to submit a claim for reimbursement.
Administered by ASIFlex