Flexible Spending Accounts
In Accordance with IRS Regulations Regarding Flexible Spending Accounts:
Please Note: As IRS updates are coming out regularly, we are monitoring the updates and will share information as we get it.
Health Care Flexible Spending Accounts
- The maximum you may contribute to a Health Care Expense Account is $2,750 per plan year.
- Over the Counter (OTC) drugs and medicines are now eligible for reimbursement without a prescription. In addition, menstrual care products are now considered qualified medical expenses.
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.
- During this time of COVID-19 closures when day care centers are not operating, it may be difficult to determine how much to set aside for dependent care expenses. Please be aware that employees may add a dependent care flexible spending account amount within 31 days of day care centers resuming operations. At that time, please complete a life status change event form and return it to HR Services.
- 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.