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Dependent Care Flexible Spending

Original Implementation Date: 01/01/2009 | Plan Effective Date: 01/01/2024

Annual Election

Annual Election Amounts

Maximum: $5,000

($2,500 maximum if you are married and file separate tax returns)

Minimum: $150

Fund Availability

Open Enrollment Election

Incur expenses beginning: 01/01
Last day to incur expenses: 12/31

Qualifying Life Event

Incur expenses beginning: 1st day of month following date of life event
Last day to incur expenses: Last day of same month of qualifying event

Unused Funds

Run-Out Period

Participants have up to 90-days after the plan year ends to submit claims for eligible expenses incurred during the plan year and within the grace period
Any unused funds remaining in the account not claimed by the end of the run-out period will be forfeited and used to offset the administrative cost of the program

Paycheck Processing

All contributions will be deducted from the employee's paycheck on a pretax basis.

Open Enrollment Election

The annual election amount will be divided into 10-equal installments deducted from the employee's January - June and September - December paychecks.

Qualifying Event Elections

The annual election amount will be divided into equal installments based on the total number of remaining pay periods in the 10-month cycle and deducted from those paychecks.

Eligible Uses

For Your Dependents

The IRS defines an eligible dependent for the Dependent Care FSA as follows:

Children under age 14 who qualify as dependents on your federal tax return
Dependents of any age who are physically or mentally unable to care for themselves who qualify as dependents on your federal tax return

Dependents do not have to be enrolled on your District-sponsored insurance plan(s) to qualify for the FSA.

For Out-of-Pocket Expenses

View All Eligible Expenses

Daycare
Before & after-school programs
Summer day camp
Nursery school or preschool
Adult day care

Care in a home or by a licensed provider
- Income must be claimed by your provider
- You may pay a family member to care for your child if the member is not a dependent on your federal tax return and is over the age of 19

Using Your Account

Debit Card

Participating employees will receive a Inspira/ PayFlex debit Mastercard and may request a second debit card for their spouse / domestic partner.

Use card to pay for eligible dependent care expenses

Debit card limitations:If your debit card is not working, it could be due to one of the following reasons:

Inactive: Claim documentation requested by Inspira/ PayFlex has not been received
Insufficient Funds: The reimbursement amount requested exceeds your remaining balance
Invalid Merchant: The card is only accepted at healthcare merchants as well as non-healthcare merchants who have implemented an Inventory Information Approval System required by the IRS
Merchant Problem: The merchant may be experiencing a problem coding eligible expenses on their own terminal

Account Online

Participants will receive access to their FSA accounts online through Inspira/ PayFlex® to track claims and contributions, view plan information, access a list of eligible expenses, download forms, request replacement debit cards, and submit claims for reimbursement.

Log onto Inspira Financial

Qualifying Events

You may only change your election amount during the annual Open Enrollment period or within 30 calendar days of a qualifying event. You may request to change, revoke, or make a new plan election for the remainder of the current plan year. The election must comply with the IRS "consistency" rule and be necessary since the event affects coverage eligibility of the employee, spouse / registered domestic partner, or dependent.

Qualifying Events include:

Change in legal marital status
Marriage / divorce / legal separation / annulment / death of spouse or registered domestic partner

Change in number of tax dependents
Birth / adoption / death

Change in employment status that affects eligibility
Termination / commencement / strike / lock-out / return from unpaid Leave of Absence

Change in cost or coverage for dependent care or outside premiums

Dependent satisfies or ceases to satisfy eligibility requirements
Reaching age limit / marriage / divorce / etc.

Medicare / Medicaid entitlements
Entitlement: Can decrease or revoke election
Loss of Eligibility: Can start or increase election

Continuation Options

Resignation / Retirement / Unpaid Leave of Absence

If you have a remaining balance in your account, then you may choose between the following options:

Submit Claims
You may submit claims for services incurred before or after the coverage termination date, as long as the expenses are incurred in the same plan year and are for qualified dependent care expenses until the balance is zero.

Family Medical Leave Act (FMLA) or California Family Rights Act (CFRA)

If you qualify and are approved for leave under the Family Medical Leave Act (FMLA) or the California Family Rights Act (CFRA), then you will have the following options:

Prepay
You can prepay through a payroll deduction for any available payroll and can continue participation in the plan while you are on leave. The election amount will not be adjusted.
Pay-As-You-Go
You can pay the required contribution while on leave. The payment can be made on a post-tax (if in unpaid status) or pretax (if in paid status) basis. The annual election amount will not be adjusted and the employee can submit claims incurred while the employee is on leave.
Catch-Up
You can increase your deduction for the remainder of the plan year after you return from leave. The annual election amount will not be adjusted, and the employee can submit claims incurred during the leave when they return to work.
Cancel the FSA
You may submit claims for services incurred before or after the coverage termination date, as long as the expenses are incurred in the same plan year and are for qualified dependent care expenses until the balance is zero.

Updated 01/29/24 am

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