Dependent Care (Day Care) Flexible Spending Account (FSA)
The Dependent Care FSA is to reimburse for work related dependent daycare expenses. It is not for reimbursement of medical expenses.
overview
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 ($2,500 if married filing separately).
Funds May be Used for:- Childcare (age 13 and under)
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Disabled dependent care
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To see a complete list of qualified dependent care expenses visit ASIFlex
- Employees have 120 days after the end of the Plan Year to submit claims for dependent care expenses.
- A terminated employee has 120 days from date of termination to submit claims for eligible daycare expenses incurred prior to the termination date
- Failure to submit claims within 120 days will result in any available contributions being forfeited.
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Funds available only as contributed
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$120 per year minimum contribution
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$2.16 per month fee for one or both types of FSA
- Unused funds will be forfeited at the end of the Plan year. Rollover is not allowed for Dependent Care FSA.
Employees must 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.
To be reimbursed for an eligible expense, employees may submit individual requests as they occur, complete the automatic reimbursement request form for reoccurring expenses or sign up for the recurring direct pay program (see below).
Recurring Direct Pay Program
With Recurring Direct Pay, employees no longer need to submit a claim for every payment. This is a free service with a one-time initial set up between you, your provider, and ASIFlex. After set up, ASIFlex will pay your dependent care provider directly from your ASIFlex account on the schedule you and your dependent care provider choose. Notification is sent to both you and your provider when payment is made. You may stop or change your payment schedule at any time. Any remaining balance due to your dependent care provider will be paid from your personal bank account.
How to Setup Recurring Direct Payments
- Login to the Employee Portal at asiflex.com.
- Under "Participant Services", click on "Schedule a Recurring Direct Payment."
- Select your plan year and "Dependent Care" as the provider type.
- Select the participating provider* that you wish to authorize for direct payment from your ASIFlex account.
- If your dependent care provider is not listed, select “Recruit a Provider” and enter your daycare provider’s information.
- Schedule your recurring direct payment and Submit.
- ASIFlex will reach out to the provider for approval to complete the set-up process.
Administered by ASIFlex
Contact ASIFlex if you have any questions regarding eligible expenses, recurring direct payment program, or how to submit a claim for reimbursement.
See the Wrap Plan Document for more details about the ASIFlex flexible spending accounts.
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Phone: (800) 659-3035 Fax: (877) 879-9038 Email: asi@asiflex.com Website: asiflex.com |