Regular full-time and part-time employees are eligible to enroll in a Medical Expense and/or Dependent Care Reimbursement Fund. These programs allow employees to direct pre-tax dollars into a fund to reimburse the employee for expenses incurred for medical and/or dependent care. The tax savings realized will vary among employees, dependent upon income level, tax bracket and filing status. IRS regulations require that money directed into the account each year must be used for expenses incurred that year. Since employees have the advantage of putting pre-tax dollars into the account, the IRS requires that employees bear some risk in planning. As a result, only $500 of unused funds can rollover each year to the next calendar year.
Enrollment into either of these funds is only allowed due to the following:
- Within 30 days of hire
- During open enrollment in the month of November each year for the following calendar year
- Within 30 days of a qualified life status event