Flexible Spending Accounts
In Accordance with IRS Regulations Regarding Flexible Spending Accounts:
Health Care Flexible Spending Accounts
- The maximum you may contribute to a Health Care Expense Account is $2,600 per plan year.
- The law mandates that health care Flexible Spending Account participants will not be able to claim Over the Counter (OTC) medicines and drugs as an eligible expense for reimbursement without supporting documentation such as a physician's prescription. It is important to note; however, that some OTC supplies, as well as insulin, will remain eligible for reimbursement.
Dependent Care Flexible Spending Accounts
- Unlike the health care FSA, dependent care FSA's are not "pre-funded"; employees will only receive reimbursement for the amount deposited into the account as of the reimbursement date.
- IRS regulations do NOT allow reimbursements for services that have not yet been provided, so even if you pay in advance for your expenses, you can only claim service periods that have already occurred. For example, if you are required to pay for all of January's child care expenses on January 1, you cannot claim the entire month's expense until February.
- It is important to note that the maximum for the dependent care FSA is a "family maximum". Therefore, if your spouse contributes to an FSA at another employer, the combined election may not exceed $5,000, or your personal limit if less than $5,000.
- Employees can generally exclude from gross income up to $5,000 of dependent care benefits provided under the College's dependent care assistance program each calendar year ($2,500 for married employees filing separately). Dickinson employees who utilize the Dickinson College Children's Center receive a discounted rate from what is charged to the general public. The amount of this discount is included in the $5,000 ($2,500 for married employees filing separately) maximum exclusion and should be considered when choosing your flexible spending deduction. Any benefits in excess of $5,000 are included in gross income with applicable taxes withheld on the final pay cycle of the calendar year. For example, if you receive a Children's Center discount of $500, then your total flexible spending deduction for the year should not exceed $4,500 ($5,000 maximum exclusion - $500 DCCC discount). For questions on your discounted tuition amount, please contact the Children's Center.