Dependent Care FSA Account


  FSA pig


This plan allows you to pay for eligible out-of-pocket dependent care expenses with pre-tax dollars. Eligible expenses may include daycare centers, in-home child care, and before or after school care for your dependent children under age 13. Other individuals may qualify if they are considered your tax dependent and are incapable of self-care. It is important to note that you can access money only after it is placed into your dependent care FSA account.

All caregivers must have a tax ID or Social Security number. This information must be included on your federal tax return. If you use the dependent care reimbursement account, the IRS will not allow you to claim a dependent care credit for reimbursed expenses. Consult your tax advisor to determine whether you should enroll in this plan. For 2021, you can set aside up to $5,000 per household for eligible dependent care expenses.

You can go into BenXcel and initiate a qualifying event to make changes to your pay period contribution. Changes can only be made with a valid qualifying event. It is not like the Mass Transit or Parking FSA where you can change contribution at any time. Please keep in mind that when you stop contributions or reduce your pay period contribution to zero per pay period it stops continued access in the plan rather than the account remaining active in order to use the rest of the balance. If you select a contribution amount less than $5 per pay period the account will terminate and you will be given a use by date. You would then only be able to submit claims incurred prior to the termination date of the account. For example, if you stopped contributions in April 2020 you would be able to submit claims you incurred from January 2020 till April 2020. If you're considering stopping your contribution, BCC recommends reducing your pay period contribution to $5 per pay period in order to keep the account active.


Grace Period:

The plan has a grace period which means that employees have until 3/15/2021 to incur claims for the 2020 plan year. For example, you can have an expense in February 2021 and submit a claim in February 2021 using the FSA funds from 2020. The plan year is from 1/1/2020 – 12/31/2020 but because of this grace period you have until 3/15/21 to use 2020 FSA funds. The filing deadline would be 6/15/2021 to submit claims for the 2020 plan year. Any claims filed after 6/15/2021 would be denied for being late. 

If you stop contributions into your FSA account your account will be terminated. You will then have up to 90 days after terminating an account to submit any claims for the time your account was active. Any claims submitted after 90 days of the account terminating will be denied for being late.


IMPORTANT CONSIDERATIONS

•    You must use all of your Healthcare FSA funds by March 15, 2022 or else you will lose them. The FSA plans have a Grace Period that allows you to continue to incur new claims up to 03/15/22, with any remaining funds from your 2021 elected amount.  

•    Elections cannot be changed during the plan year, unless you have a qualified change in family status.

•    FSA funds can be used for you, your spouse, and your tax dependents only.

•    Claim forms may be found on the BCC website, https://benxcel.net.

•    Stops on the last day of active employment.

•    You must re-enroll every year during Open Enrollment. Your 2020 elected amount will not roll over for 2021.