MMC Benefits Handbook
How the Plan Works
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.
Example: You can use your 2023 Dependent Care Flexible Spending Account to be reimbursed for eligible expenses incurred between January 1 and December 31, 2023 (the plan year). You must submit claims for those eligible expenses no later than March 31, 2024. If you have a $1,000 balance in your Dependent Care Flexible Spending Account on December 31, 2023, your $1,000 balance will be forfeited unless you submit by March 31, 2024 claims for eligible expenses incurred in 2023.