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Pre-Tax Expense Accounts: “Use It or Lose It” Deadline
September 2, 2008, Volume 55, No. 2

If you have a Pre-Tax Expense Account, you already know how your account can save you money by allowing you to pay for health care and dependent care expenses with pre-tax dollars. However, it’s important to remember that you cannot keep a balance in your account forever—and time is running out for you to use that money! September 15, 2008 will be the final day that you can incur eligible expenses for the 2007-2008 plan year.

The IRS regulation known as “Use It or Lose It” means just that: if you don’t use the money in your Health Care or Dependent Care Pre-Tax Expense Account by a specified date, 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 (a two and a half month grace period). Claims for these expenses must be submitted by September 30 following the end of the plan year in order for them to be accepted.

Updated Pre-Tax Expense Account claim reimbursement forms are available online at www.hr.upenn.edu/Benefits/Forms.aspx. Please use these new versions to submit your claims. For more information on Pre-Tax Expense Accounts, including a list of eligible expenses and instructions on how to file a claim, go to www.hr.upenn.edu/Benefits/PreTax. You can also call the Penn Benefits Center at 1-888-PENN-BEN (1-888-736-6236), Monday through Friday, 8 a.m. to 6 p.m. (select Option 3).


Almanac - September 2, 2008, Volume 55, No. 2