2009 Benelect Guide - Spending Account
The purpose of this guide (print pdf version) is to provide you with an overview of Benelectthe flexible benefits program at Case. This is not intended to be a comprehensive description of the benefit plans. Details of individual benefit plans are provided in legal plan documents and contracts that govern the operation of the program. Specific coverage information is contained in the individual summary plan descriptions available from the medical insurance carrier or Benefits Administration. Employees are responsible for selecting and using their benefits prudently and in the most cost-effective manner.
Flexible Spending Accounts
Spending accounts are governed by Internal Revenue Service rules. Please refer to IRS guidelines for specifics. In addition, the IRS says that any unspent balance at the end of the year must be forfeited. This "Use or Lose" rule is the trade-off for the tax advantages you enjoy by using the accounts. In addition, if you terminate your participation in a spending account, only expenses incurred prior to the termination date can be considered for reimbursement. Since this account is to be used for predictable expenses, careful planning should help you avoid any forfeiture. Any money forfeited at the end of the year will be used to offset the costs of administering Benelect. The account can reimburse expenses for legal dependents, but does not recognize spouse-equivalent status, therefore, you cannot be reimbursed for a domestic partners health care expenses. By law, spending account balances do not earn interest.
HEALTH CARE Spending Account
To help you pay for a number of predictable out-of-pocket medical and dental expenses for you and your family, the university provides you with a voluntary spending account. You can make before-tax deposits to your health care account (from $10-$416/month), then reimburse yourself for certain expected expensestax free. Your deposit amount cannot be changed, stopped, or started during the year, except for a change in the deposit amount that is on account of and corresponds to a documented change in family or job status. The change in deposit amount must be consistent with the change in family or job status.
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Insurance premiums cannot be reimbursed through this account. If you have a question about whether or not an expense is reimbursable, please contact the third party administrator, Meritain Health at 1-877-801-1500. Claims for reimbursement must total at least $50 and are processed weekly by Meritain. You will receive an account statement each time you are reimbursed. For expenses incurred in a given calendar year, you have until June 30 of the following year to have your claims for reimbursement processed. Print the Medical Reimbursement Claim Form (pdf). Mail the completed claim form with your receipts to Meritain Health, P. O. Box 94928, Cleveland, Ohio 44101-4928.
Dependent Care Spending Account
You can use a Dependent Care Spending Account to make before-tax deposits (from $10-$416 per month), to be reimbursed for expenses incurred for care of your children or certain qualifying adults. If you and your spouse file separate tax returns or your spouse uses a separate dependent care spending account, the most you may deposit in you dependent care spending account is $208 per month ($2,500 per year). Print the Dependent Care Reimbursement Claim Form (pdf). Mail the completed claim form with your receipts to Meritain Health, P. O. Box 94928, Cleveland, Ohio 44101-4928.
Expenses for these qualifying family members are eligible for reimbursement:
- Children under age 13 who qualify as dependents on your federal income tax return. (This IRS-regulated account does not recognize spouse equivalent status, therefore, you cannot be reimbursed for dependent care expenses for children of domestic partners.)
- Other qualifying family members who are physically or mentally incapable of caring for themselves (such as a parent whom you support) and who qualify as dependents on your tax return.
The care must be necessary so that you and your spouse (if you are married) can work, actively look for work, or attend school full time. Care can be given in a private home (including yours) or in a day care center. Overnight camp expenses are not reimbursable. Homes and centers caring for more than six people must meet state and local license requirements. For expenses to be reimbursed, care cannot be given by anyone you claim as a dependent on your tax return. You can be reimbursed for expenses paid to a relative age 19 or older if you do not claim the person as a dependent. You must submit a receipt from your caregiver, showing the caregiver's taxpayer ID. Any amount deposited in your dependent care spending accouant will be reported on your W-2 form at the end of the year.
Claims for reimbursement must total at least $50 and are processed weekly by a third party administrator, Meritain Health. You will receive an account statement each time you are reimbursed. For expenses incurred in a given calendar year, you have until June 30 of the following year to have your claims for reimbursement processed.
Life Event Changes
If your family or job status changes, for reasons specified in IRS regulations, you can start or stop a Dependent Care Spending Account, and under certain circumstances you can change the amount of the deposit. An account can be stopped or started, or the deposit amount can be changed only if the change is consistent with the change in family or job status. For more information, please refer to the summary of permissible life event changes in the Benelect Guide.
Print the Benelect Change of Status Form (pdf).
Federal Tax Credit
If you have dependent care expenses, you may be eligible for a tax credit on your federal income tax return. You cannot apply the same expenses to both a spending account and the tax credit, however. In general, if your annual family income is $24,000 or more, you probably will have more savings through the spending account. Your particular situation (and your possible eligibility for an earned income tax credit) will determine which method is better for you. You will need to choose which tax-saving method makes more sense for your family. By law, spending account balances do not earn interest. Money deposited in the health care spending account cannot be used for dependent care expenses, and vice versa.
