MMC Benefits Handbook
How the Plan Works
COVID-19 Related Update
In 2021, the Company made a temporary change to the design of the Dependent Care Flexible Spending Account as permitted by temporary changes in applicable federal law related to the Covid-19 pandemic. As a result of these changes, you will not forfeit any amounts that you do not use for expenses incurred by December 31 and your unused balance (up to the plan maximum) will be carried over for eligible expenses incurred in the next plan year. This unlimited carryover change will apply only for carryovers from the 2020 plan year into 2021, or the 2021 plan year into 2022. Nonetheless, you should carefully estimate your expenses before deciding on an amount to contribute. For more information about the special changes to the Dependent Care Flexible Spending Account, including examples of rollovers of unused balances as of December 31, 2021, see the Things You Need to Know About the 2021 and 2022 FSAs.
In 2021, the Company made a temporary change to the design of the Dependent Care Flexible Spending Account as permitted by temporary changes in applicable federal law related to the Covid-19 pandemic. As a result of these changes, the qualifying child age has been increased up to age 13 (i.e., until the child's 14th birthday). This increase only applies to the 2020 and 2021 plan years.
The unlimited carryover of unused balances for the Dependent Care Flexible Spending Account (FSA) applies to your 2020 plan year (carryover into 2021) and 2021 plan year (carryover into 2022) FSA balances. For future plan years, it is possible the permitted carryover amount will be eliminated. Generally, in accordance with IRS rules, you will forfeit any account balance remaining in your Dependent Care FSA not used to pay eligible expenses incurred between January 1 and December 31 of the plan year if they are submitted after March 31 of the following plan year.
You may contribute to the Plan through payroll deductions on a before-tax basis. When you have reimbursable dependent care expenses, you can receive your money back tax-free, up to the amount that is in your account when you ask for reimbursement.
The IRS allows you to contribute to this Plan if:
  • you are single and work
  • you and your spouse both work, or your spouse is actively looking for paid work
  • your spouse is a full-time student for at least five months of the year
  • your spouse is physically or mentally not able to provide self-care.
You contribute to the Dependent Care Flexible Spending Account over a 12-month plan year, from January 1 to December 31 (or fewer months, if you start or stop participating during the plan year as the result of a qualified family status change). You may use your Dependent Care Flexible Spending Account to be reimbursed for eligible expenses incurred during the plan year. You have until March 31 of the following plan year to submit for reimbursement of eligible expenses you incurred during the plan year.
In accordance with IRS rules, you will forfeit any account balance not used to pay eligible expenses incurred by December 31 of the plan year if they are not submitted by March 31. 3
Example: You can use your 2022 Dependent Care Flexible Spending Account to be reimbursed for eligible expenses incurred between January 1 and December 31, 2022 (the plan year). You must submit claims for those eligible expenses no later than March 31, 2023. If you have a $1,000 balance in your Dependent Care Flexible Spending Account on December 31, 2022, your $1,000 balance will be forfeited unless you submit by March 31, 2023 claims for eligible expenses incurred in 2022.