07-D TML Health Reimbursement Acct

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The Plan Sponsor is required to maintain a notice of its privacy practices that explains fully how the Plan Sponsor and its business associates, including the Plan Supervisor, may use and disclose your health information and your rights under the Privacy Rille. If you have not received a copy of the Plan Sponsor's notice of privacy practices for your Health Care Spending Account, contact the Plan Sponsor. DEPENDENT CARE REIMBURSEMENT ACCOUNT You may set aside money in your Dependent Care Reimbursement Account to pay childcare expenses up to a. maximum of $5,000 or $2,500 per year for married employees who file separate tax returns. Maximum benefits notwithstanding any other provision of this Plan, no Participant shall receive Dependent Care Reimbursement Benefits in excess of $5,000 (or $2,500 in the case of a married Participant filing a separate Federal income tax return) in a calendar year. An eligible expense must enable the employee (and spouse, if married) to be gainfully employed or to look for gainful employment. Special limitations to this account include the following: · If you are married, your spouse must be employed in a paying job, a full-time student for five months in the year, or disabled. · The maximum age for eligible children is through age 12. Other dependents (such as children age 13 and over, parents or spouse) can receive care if they are disabled or cannot otherwise care for themselves. because of physical or mental impairments. · Tuition for private school is not an eligible expense; only Pre-Kindergarten tuition expenses incurred for a day care type facility will be accepted. · The child or other dependent receiving the care must live in your home and must be claimed as a dependent on your Federal Income Tax Return. · You must pay a "qualified person" to care for your eligible dependents at your home, at a licensed day care center, at a day camp, or at another location (except overnight camps). A "qualified person" providing dependent care does not include any of your children under age 19 or any other person whom you claim as a dependent. · You must file a Form 2441 with the IRS, including the name, address and taxpayer identification number of the person or organization, providing the dependent care services. Money from this account will pay your eligible child care expenses tax-free. Of course, you may be able to claim tax credit for child and dependent care costs. The credit can be claimed when you file your income tax return. For more information about the tax credit, refer to IRS publication 503 - Child and Dependent Care Expenses. The tax credit can be claimed for any expenses not paid through your Dependent Care Reimbursement Account, but you cannot use the tax credit and the Dependent Care Reimbursement Account for the same expenses. Why You Should Budget Carefully It is important that you budget carefully when taking advantage of the Child Care Reimbursement Account. The same tax law that permits this benefit also specifies that any money that is left in your account at the end of the plan year must be forfeited. Your account balance cannot be transferred to your Umeimbursed Health Care Spending Account or carried forward to the next year. However, you will have 90 days after the end of the plan year and any applicable grace period to claim dependent care expenses incurred in the previous plan year or during the grace period before any unused balance is forfeited. Even if you should over budget and have some money remaining unused in your account, you may still benefit due to the amount of your tax savings. Once Enrolled. You Mav Not Chanl!:e Your Election for the remainder of the flex plan year unless a qualifying event occurs. How to Get Reimbursed Claiming your before-tax dollars to pay covered childcare expenses is an easy process. Remember, you must have at least $25 in expenses to be reimbursed. In addition, the childcare must be provided during the plan year for which you have set up your account. Your expenses will be reimbursed up to the amount in your Child Care Reimbursement Account. You will be ' reimbursed for the remainder of your expenses as money is deposited into your account on the first of each month. Page 10