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Avoid Losing Money in Pre-Tax Expense Accounts
September 12, 2006, Volume 53, No. 3

Do you have an unused balance in your Pre-Tax Expense Accounts (Health Care or Dependent Care)? If you haven’t yet used up the money you contributed to your account for the 2005-2006 plan year, you should keep some important dates in mind. Due to an IRS regulation known as “Use It or Lose It”, if you don’t use up the full balance in your account each plan year, you lose that unused money!

Health Care Pre-Tax Expense Account: Due to recent IRS changes, you now have an extended period of time to incur claims for this account. You can use your 2005-2006 account balance for claims incurred up to September 15, 2006. You must submit all claims for the 2005-2006 plan year by September 30, 2006.

Dependent Care Pre-Tax Expense Account: For the 2005-2006 plan year, your claims must have been incurred by June 30, 2006. However, you have until September 30, 2006 to submit those claims. Note that next year, the deadline extension for incurring expenses will apply to both the Health Care and Dependent Care Accounts.

For more information on the Pre-Tax Expense Accounts, including listings of eligible expenses and instructions on how to file a claim, go to www.hr.upenn.edu/benefits/pretax/default.asp. Or call the Penn Benefits Center at 1-888-PENNBEN (1-888-736-6236), M–F, 8 a.m. to 6 p.m. (Option 3).

—Division of Human Resources



Almanac - September 12, 2006, Volume 53, No. 3