Medical Reimbursement Account:
Your un-reimbursed health care expenses in each calendar year can be paid with pre tax dollars when you direct your estimated out-of-pocket medical expenses to the Medical Reimbursement Account. Health care expenses which can be paid with before-tax dollars include: health and dental insurance plan deductibles, co-payments for certain health and dental treatment, expenses not covered under the health and dental plans, eye and vision care, hearing examinations, and hearing aids.
When you enroll, estimate the amount to be withheld during the calendar year. When you incur un-reimbursed medical expenses, complete a claim form and submit originals of the bills or receipts. You will be reimbursed for the amount of the unpaid claims. However, you ca\not receive more money than the total you elect to deposit into the Medical Reimbursement Account for that year.
You may allocate up to $2,500 each calendar year to the Medical Reimbursement Account. The Internal Revenue Service guidelines require that any amounts not spent from the Medical Reimbursement Account must be forfeited, therefore you should estimate your expenses carefully. Link to: Enrollment Form Reimbursement Form
Dependent Care Reimbursement Account:
You can set up a pre tax Dependent Care Reimbursement account to pay for the costs of caring for children or other eligible dependents in nursery schools, day care centers, or private homes.
When you enroll, estimate the amount of expense that will be incurred in the calendar year. When you incur the expense, you submit a claim form together with proof of expense and you will be reimbursed.
You may allocate up to $5,000 each calendar year to the Dependent Care Reimbursement Account. Internal Revenue Service guidelines require that any amounts not spent from the Dependent Care Reimbursement Account must be forfeited.
You should be aware that instead of participating in the Dependent Care Reimbursement Account you may elect a tax credit on your income tax return for a portion of certain allowable expenses. Depending on the earned income of you and your spouse for the calendar year, it may be to your advantage to claim the tax credit. You may not take the tax credit on reimbursed dollars. Tax credit (up to IRS limits) may be taken on expenses that exceed reimbursed expenses.
Link to: Enrollment Form Reimbursement Form
