Any money left in your account and not claimed by April 30, 2023, will be forfeited. Any money left in your 2021 account on Decemmay be reimbursed by submitting receipts for eligible expenses no later than April 30, 2023. For example, amounts contributed in 2022 can be used for qualified expenses incurred while enrolled in 2022 through Maand claims must be submitted by April 30, 2023.ĭue to the Covid-19 pandemic, the following special rule applies for amounts contributed in 2021:Īny funds contributed during 2021 may be used for qualified expenses incurred Januthrough December 31, 2022, while enrolled in the FSA and employed at Washington University. Claims for reimbursement must be submitted by April 30 of the year following the year the amounts were contributed. Normally any funds contributed during a calendar year may be used for qualified expenses incurred during that calendar year through March 15 of the following year while enrolled in the FSA and employed at Washington University. $2,150 to reach the statutory $5,000 maximum limit) Must coordinate contributions with spouse to ensure you do not exceed this joint limit (The limit will remain $2,500 if you are married filing separately from your spouse.) We expect that a reduced limit will be in place for highly compensated employees in future years. For 2023, the annual pre-tax limit for Dependent Care FSA contributions by highly compensated employees (employees who earned $135,000 or more in 2021) has been reduced to $2,850 for single tax filers or married tax filers filing jointly with their spouse. The required non-discrimination testing is typically done in the first calendar quarter of each year and may result in a further reduction in the maximum contribution amount for the remainder of the year. Note that the pre-tax contribution elections by highly compensated employees may be reduced annually to comply with IRS non-discrimination testing requirements. To be eligible, services must be rendered for the sole purpose of allowing the parents to work or attend school full-time. Contributions are made on a pre-tax basis and can be used to pay for eligible dependent care expenses such as licensed day care, preschool or babysitting services for dependents under the age of 13. The minimum annual contribution is $120.ĭependent Care Spending: Employees may elect to contribute up to $5,000 per calendar year if single or married and filing a federal tax return jointly with your spouse ($2,500 per calendar year if married and filing separately). WashU couples may each contribute up to the individual annual maximum amount. Health Care Spending: Employees may elect to contribute up to $2,850 per calendar year on a pre-tax basis to pay for eligible out-of-pocket health care expenses such as health, dental, prescription drug or vision plan deductibles, copays and coinsurance, eyeglasses, contact lenses and hearing aids. Enrolling in a Flexible Spending Account can help you to save and pay for eligible Health Care and Dependent Care expenses with pre-tax dollars. Health Insurance Premium: The employee’s monthly premium for the university-sponsored health plan is automatically deducted from employee’s gross wages thus reducing their taxable earnings.
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