Planning your Deposits for the Dependent Care Account
Each year you must decide, in advance, what your deposit to your Dependent Care Account will be. However, any changes you make to your amount must correspond and be consistent with the event permitting the election change. For example: if you add a dependent, the deposit amount could increase. Events permitting a change include:
• Change in legal marital status, including marriage, death of spouse, divorce, legal separation or annulment.
• The Judgment, Decree or Order requiring a change in health coverage for your child.
• Change in the number of tax dependents, including birth, adoption, placement for adoption, commencement or termination of adoption proceeding, or death of dependent.
• Change in employment status of the employee, spouse or dependent including:
- Termination or commencement of employment;
- Commencement or return from an unpaid leave of absence;
- Commencement or termination of strike or lockout; or
- Change from salaried to hourly which causes or terminates eligibility under a plan.
• The dependent satisfies or ceases to satisfy the requirements for coverage due to attainment of age, student status or any similar circumstances as provided under the accident or health plan under which the employee receives coverage.
• A change in the place of residence or work site of the employee, spouse or dependent.
• A change in the spouse’s or dependent’s coverage under another employer’s plan including election and open enrollment changes.
• Gain or loss of Medicare or Medicaid entitlement.
• The taking of a leave under the Family Medical Leave Act (FMLA).
• Termination of employment for a period exceeding 30 days.
• Eligibility for COBRA continuation coverage by the employee, spouse or dependent under the University’s group health plan.
Should your family status change and you decide to begin, discontinue, or change the amount of your deposits, please notify the Human Resources Department within 30 days of the date of your family status change. The IRS requires that any money remaining in your account(s) at year-end must be forfeited. In order to maximize the tax advantages offered through the reimbursement accounts, you should estimate your health care and your dependent care expenses carefully before the beginning of each year.