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Use It or Lose It–by September 15
September 4, 2007, Volume 54, No. 2

Do you have a balance remaining in your Pre-Tax Expense Account from last year? If so, you have a limited time left to use up that money! September 15 is the final day that you can incur expenses to claim against last year’s account balance.

Whether it’s your Health Care or Dependent Care account, if you haven’t yet used up the money you contributed to that account for the 2006-2007 plan year, you’re in danger of losing it.  That’s what the IRS regulation known as “Use It or Lose It” means: if you don’t use the full balance in your Pre-Tax Expense Account each plan year, you won’t get it back.

Penn’s benefit plan year runs from July 1 through June 30. The Pre-Tax Expense Account contributions you make during the plan year can be used for expenses you incur within that year, as well as through September 15 following the end of that year. Essentially that means you have an additional two and a half months to incur expenses each plan year. And remember that you need to submit your claims by September 30 following the end of the plan year in order for them to be accepted.

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. Or call the Penn Benefits Center at 1-888-PENNBEN (1-888-736-6236), Monday through Friday, 8 a.m. to 6 p.m. (select Option 3).

Almanac - September 4, 2007, Volume 54, No. 2