Dependent Care Flexible Spending Accounts

Overview

A Dependent Care FSA helps you save money on eligible dependent care expenses by allowing you to pay for those expenses with pre-tax dollars. Eligible expenses may include care for children under age 13 and certain adult dependents who are incapable of self-care. In most cases, the care must be necessary so you (and your spouse, if applicable) can work, look for work, or attend school full-time. Because contributions are deducted from your paycheck before taxes are applied, you can reduce your taxable income and increase your take-home pay.

How It Works

• Enroll during your annual benefits enrollment period and elect your contribution amount for the plan year.
• Contributions are deducted automatically from each paycheck on a pre-tax basis.
• Receive and pay for eligible dependent care services.
• Submit a claim and supporting documentation to Alerus for reimbursement, unless you used your Alerus Health Benefits Debit Card to pay for eligible services directly.
• Once a claim is approved, reimbursement is issued by direct deposit or check, depending on your account settings. If you use your Alerus Health Benefits Debit Card, eligible expenses are paid directly from your available account balance at the time of purchase.

Important Reimbursement Rules

• Expenses must be incurred so you (and your spouse, if applicable) can work, actively seek employment, or attend school full time.
• Services received while you are on a leave of absence and not working are generally not eligible for reimbursement. However, services received during temporary absences from work, such as vacation or illness, may still be eligible.
• Reimbursements cannot exceed your current account balance. If a claim exceeds your available balance, the remaining amount will remain pending and be reimbursed as additional payroll contributions are deposited into your account.

Important Things to Know

• Unused funds are forfeited at the end of the plan year.
• You must make a new election each plan year.
• Elections generally cannot be changed during the plan year unless you experience a qualifying life event.
• IRS Publication 503 provides additional guidance on eligible dependent care expenses.
• The Dependent Care FSA and the Dependent Care Tax Credit each offer potential tax savings for eligible dependent care expenses. Because the benefit of each option varies based on your individual circumstances, consider consulting a tax advisor to determine which may be more advantageous for you.
• Refer to your Summary Plan Description (SPD) for current contribution limits and plan-specific details.

Eligible Expenses

The following expenses are generally eligible when they are necessary for you (and your spouse, if applicable) to work:

• Before and After School Care
• Day Camp
• Day Care Center
• Dependent Care Center
• Elder Care
• In-Home Day Care
• Montessori School (Pre-K only)
• Nanny Care
• Preschool/Nursery School
• Registration Fees (required to obtain care)
• Sick Child Care Facility

Ineligible Expenses

• Field Trips (if charged separately from dependent care costs)
• Kindergarten and Post-Kindergarten Private or Parochial School Tuition
• Meals and Food (if charged separately)
• Music, Swimming, and Dance Lessons
• Overnight Camp (not eligible even if the overnight portion can be separated from daytime care costs)
• Payments to Your Spouse or Dependent Child for Watching Other Dependent Children
• Supplies (if charged separately)
• Transportation Not Provided by the Care Provider and Charged Separately from Dependent Care Costs (e.g., children’s transportation services)
• Tutoring Programs and Summer School

How to Submit Claims

Claims can be submitted:

• Online through your Alerus Account
• Through the Alerus Benefits Mobile App
• By completing and submitting an Alerus Claim Reimbursement Form

Claims cannot be processed until all required supporting documentation has been received and approved.

Required Documentation

To process your claim, provide an itemized receipt or statement that includes:

• Care provider’s name
• Care provider’s Tax ID number or Social Security number
• Dates of service
• Name of the dependent receiving care
• Detailed description of the type of care received
• Amount charged for the services provided

Even if you are submitting a claim online or through the mobile app, you may also submit alongside your electronic claim an Alerus Claim Reimbursement Form as supporting documentation.

Canceled checks, bank statements, and credit card statements are examples of documentation that cannot be accepted to support a claim.