If you’re racking up child or elder care expenses, the Dependent Care Flexible Spending Account (FSA) can help you stretch your dependent care dollars. Plus, Lam matches 15% of your contributions.
CYC Is Now Optum Financial
The name has changed, but your benefits remain the same.
What You Need to Know
With a Dependent Care FSA, you save by making pretax paycheck contributions to a tax-free FSA. This reduces your taxable income, so you pay no income taxes on FSA expenses. On top of that, Lam matches 15% of your contributions, which means you have even more to spend on eligible adult and child care services.
- Note the contribution limit. You can contribute up to $5,000 a year if you’re single or married and filing a joint tax return, or $2,500 if you’re married and filing separate tax returns.
- Deposits are automatic. Contributions are deducted on a pretax basis from your paycheck and deposited automatically into your FSA.
- Use for a range of expenses. Your Dependent Care FSA covers a variety of eligible dependent care expenses, including preschool, summer day camp, before- or after-school programs, or child or adult day care, while you work.
- Plan carefully. You must incur eligible expenses between January 1 and December 31. Usually, you’ll forfeit any funds remaining in your account if you haven’t used them by December 31. This year only, any unused FSA balance in 2021 will automatically carry over to 2022.
- Don’t miss the reimbursement deadline. You have until March 31 of the following year (or up to 90 days from your termination date, whichever is earlier) to submit eligible expenses for reimbursement.
Unlimited Carryover to 2022
In response to COVID-19, the IRS relaxed some rules for FSAs. Any unused balance in your FSA from 2021 will automatically carry over to 2022.
What You Need to Do
- Elect your FSA contribution during Open Enrollment. You must make an election every year, because your contribution amount does not roll over from year to year.
- Access your Dependent Care FSA account using the Optum Financial website or the Optum Financial app. You can use either to manage your account and submit claims and receipts.
- Choose to be reimbursed for payments you make to your care providers, or choose to pay providers directly from your FSA.
- Incur eligible expenses from January 1 through December 31, and claim reimbursements by March 31 of the following year.
- Save all your receipts; you may be asked to provide copies to confirm your expenses.