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November 2011 Moms
Sarah101307
member
Dependent Care FSA?
Sarah101307
member
Is anyone participating or familier with this? I am trying to figure out how it works - can you submit claims before the entire amount is in the account for the year (ie: daycare)? Thank you!
This discussion has been closed.
Re: Dependent Care FSA?
We started participating this year.
We are putting $3000 into the daycare flex account (up to $5K is allowed for us, but we are putting the other $2K into a health flex account).
I was told the entire amount would be available on Sept 1 (the start of our fiscal year).
Interestingly enough I was also told that - say we somehow used the entire $5K- both health and daycare FSAs- in September, and then I quit for another job, therefore didn't stick with it to have the entire amount taken out (because its divided into even payments, so I won't personally have fully paid for it until August of next year, even though I can use the entire amount immediately)....that they wouldn't pursue me. Not sure how true that was (HR rep told me that), but thought it was interesting.
This is the way it works at my company too.
I think every company has different policies about this. At my company I can put in a max of $4000 in my daycare account, and they add the last $1000 for a total of $5000 for the year. I can only use what is put in every month. So it works out to $416.66 every month that I can get back. I pay more than that in actual daycare so it doesn't cover everything. If you don't use it by 12/31 then you lose it.
With the health FSA at my work you can put $5000/year in there (no matching from company) and can use the entire thing on January 1st even though the money isn't all there yet. And if you leave the company on January 2nd they won't pursue you to get that money that you didn't contribute. If you don't use it by 12/31 then you lose it.
You probably need to read your policies and/or talk to HR at your company to figure out how your company works it.
Mine works the same as Mrs.Greeko except my company doesn't contribute anything. I can put in $5,000 max toward a dependent care account.
My FSA was pretty much all used up by May even though I hadn't contributed the whole $2500 yet.
My company has a max contribution of 5K per account type. It is use it or lose it. For our Health care it is available right away and can be used. Should you use 1000 but have only put in 500. 500 would be pulled from your last paycheck or you would owe it back. For Dependant care you can claim reimbursement for the entire amount as soon as the expense occurs however you will only be repaid at the rate of deposit. So if you put in 145 every other week they would reimburse 145 every other week.
FYI In my most recent reading you will do better claiming the actual cost vs an FSA if you make under 110K. If you make over 110K the FSA is better. I would check into it more but just wanted to throw that out.