Contact Us
Phone: 610-526-5261

Human Resources
101 N. Merion Ave.
Bryn Mawr College
Bryn Mawr, PA 19010-2899

Mapping Address:
140 Morris Ave.
Bryn Mawr, PA 19010-2899

Fax: 610-526-7478
(Recruitment, General)
Fax: 610-526-7850
(Director, Benefits, HRIS)

Flexible Benefit Plan (cont'd)

 

MEDICAL CARE SPENDING ACCOUNT

(Available at the start of the Plan Year, January 1, following one year of service.)

This account allows you to be reimbursed for medical and dental expenses that are not covered by insurance with before-tax dollars.

Flexible expenses may include but are not limited to the following:

  • Contact Lenses
  • Prescription Drugs
  • Eye Glasses
  • Deductibles
  • Dental Care
  • Co-payments
  • Hearing Aids
  • Counseling Fees
  • Over-the-counter medications such as aspirin

Please contact Human Resources if you have questions regarding whether an expense is reimbursable. Items commonly submitted that are not reimbursable include over-the-counter vitamins, teeth whitening products and/or procedures, cosmetic surgery (including electrolysis) and personal use items. While long term care insurance is reimbursable as an income tax deduction, it remains unreimbursable through a medical spending account. A complete list of eligible expenses is available from the I.R.S. You may obtain this information by calling 1-800-TAX-FORM and requesting I.R.S. Publication 502, Medical and Dental Expenses.

To set up a Medical Care Spending Account you will need to estimate how much money you and your eligible dependents spend for medical and dental expenses which are not covered by any health plan. This amount will be divided equally by the number of pay periods to determine your amount withheld per paycheck. This money accumulates and may be withdrawn monthly to cover eligible expenses, up to the maximum amount you have allocated in your account.

The maximum amount that you can have put into your account is $2,500 per plan year. Your contribution will be made into your account. This money accumulates and may be withdrawn monthly by submitting a claim to Human Resources.

It is important that you choose the amount in this account carefully. If you do not use all the money in your Medical Care Spending Account by the end of the plan year, December 31, the balance will be forfeited. This provision is known as "use it or lose it."

You should also be aware that the amount you place in a Spending Account may affect your Social Security income upon retirement, because the Spending Account reduces the amount of your gross income and the amount of Social Security tax that is withheld. The amount cannot be claimed as a tax deduction for Federal income tax purposes.

Medical and dental expenses must be incurred by you or your dependent(s) within the Plan Year, January 1 - December 31. The date of service determines the eligibility of a claim; not the date of the billing statement or the date of payment. Eligible dependents include your spouse and any other dependent whom you can claim as an exemption on your federal income tax return. Since the I.R.S. does not recognize a domestic partner in their definition of an eligible dependent, expenses incurred by a domestic partner cannot be submitted through the Medical Care Spending Account.

 

DEPENDENT CARE SPENDING ACCOUNT

This account allows you to pay for dependent care with before-tax dollars.

Employment-related expenses for household services and expenses for the care of a qualified dependent, including qualified dependent care center expenses, are covered. Schooling is covered only if your child is in a grade level below kindergarten and the amount you pay for schooling is incident to and cannot be separated from the cost of care. The I.R.S. does not consider overnight camp expenses to be an employment-related expense, and these expenses are therefore not reimbursable.

Please consult Human Resources if you have questions regarding whether an expense is reimbursable. A complete list of eligible and ineligible expenses is available from the I.R.S. You may obtain this information by calling 1-800-TAX-FORM, and requesting I.R.S. Publication 503, Child and Dependent Care Expenses.

A qualified dependent is one who is under age 13 at the time the service is provided and for whom you can claim as an exemption on your federal income tax return, a dependent or non-dependent spouse who is physically or mentally incapable of caring for himself or herself, or any other dependent who is physically or mentally unable to care for himself or herself and for whom you can declare as a tax exemption on your federal income tax return.

A qualified dependent care center is a licensed facility that cares for more than six individuals and receives a fee payment or grant for services. A "provider" of dependent care can be any person including your own child over age 19, who is not claimed on your federal income tax return as a dependent. An individual provider's Social Security number must be submitted for reimbursement.

If you are married and file a joint return, or if you are single and file as head of household, you may contribute up to $5,000 to this reimbursement account. If you are married and file a separate tax return, the maximum you may contribute individually is $2,500. If both you and your spouse participate in a pre-tax expense account plan, your combined contributions to both accounts cannot exceed $5,000. Your contributions also cannot exceed the lesser of your annual earned income, or your spouse's annual earned income. There is an exception if your spouse is disabled or a full-time student; contact Human Resources for details. The total amount you may shelter may also be limited by federal rules regulating discrimination in favor of highly compensated employees.

Your contribution will be made into your account. This money accumulates and may be withdrawn monthly to cover eligible dependent care expenses. There is no reimbursement before care has begun. The advantage of having this type of account is that deposits are made before Federal and Social Security taxes are withheld. However, any amount funded through this kind of reimbursement account reduces the amount of federal income tax credit available for child care.

It is important that you choose the amount in this account carefully. Dependent care expenses must be incurred within the Plan Year, January 1 - December 31. The date of service determines the eligibility of a claim; not the date of the billing statement or the date of payment. If you do not use all the money in your Dependent Care Spending Account by the end of the Plan Year, December 31, the balance will be forfeited. This provision is known as "use it or lose it".

You should also be aware that the amount you place in a Spending Account may affect your Social Security income upon retirement, because the Reimbursement Account reduces the amount of your gross income and the amount of Social Security tax that you contribute. The amount cannot be claimed as a tax deduction for Federal income tax purposes.

Please contact Human Resources if you have any questions on these provisions.

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