Questions & Answers

An IRS approved plan that allows you to set aside money on a pre-tax basis to pay for eligible dependent care expenses. Eligible expenses include day camps, nursery schools, after-school programs and daycare centers.

Expenses you incur for dependent care because you and your spouse are employed. They can be for children under the age of thirteen (13), for disabled children, or for adult care. To qualify, you must be able to claim the dependent for tax purposes and be actively working. Also, it is important to remember that the expenses must have been incurred to enable you and your spouse (if applicable) to remain gainfully employed.

Anyone who is not your dependent under the age of nineteen, or anyone for whom you do not claim an exemption for tax purposes. This can be any day care facility or any individual whether the individual cares for your child inside or outside of your home. However, if an individual cares for your child outside of your home, you will want to check your state's guidelines for what constitutes a "qualified" day care facility.

The minimum contribution is defined by your group and the IRS maximum per years is $5,000.

The IRS stipulates that $5,000 per year is the maximum amount for a couple who files taxes jointly and $2,500 (per filer) if you file separately.

If you still have dollars in your DCRP when you terminate employment you may continue to submit eligible dependent care expenses you incur through the end of the Plan Year.

Unused dollars are forfeited to the employer. They cannot be carried forward to a new plan year or used for other purposes. You should be conservative in your estimates.

You will be reimbursed your current account balance. The additional charges will be "held" until such time as additional funds are received, at which time you will automatically be sent the balance.