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Money Still in Your Pre-Tax Expense Account?
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May 25, 2010, Volume 56, No. 34

If you have an unused balance in your Health Care or Dependent Care Pre-Tax Expense Accounts, 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 the full balance in your account each plan year, you lose that unused money. 

Penn’s plan year runs from July 1–June 30 of each year. The money you contribute to the Pre-Tax Expense Accounts during each plan year can only be used for expenses incurred within certain dates (see below).  Keep in mind that the expenses must be incurred while you are actively participating in the accounts.

Contributions During Current Plan Year (July 1, 2009–June 30, 2010)

Account type

Time frame to incur expenses

Deadline to submit claims

Health Care and
Dependent Care

July 1, 2009–September 15, 2010

September 30, 2010

Contributions During New Plan Year (July 1, 2010–June 30, 2011)

Account type

Time frame to incur expenses

Deadline to submit claims

Health Care and
Dependent Care

July 1, 2010–September 15, 2011

September 30, 2011

Visit the Human Resources website at www.hr.upenn.edu/benefits/pretax for more information on the Pre-Tax Expense Accounts including listings of eligible expenses and instructions on how to file a claim. You can also call the Penn Benefits Center at 1-888-PENNBEN (1-888-736-6236), Monday through Friday, 8 a.m.–6 p.m.

New Benefits Deductions Start in June

Now that Benefits Open Enrollment is over, remember that any changes you made to your benefits elections will take effect on July 1, 2010. Even if you didn’t make any changes, new deduction rates will still apply for the new plan year. New rates for your existing medical, dental, vision and life insurance plans will be reflected in your June paycheck, and new contributions for the Pre-Tax Expense Accounts will begin in July.  Visit the Human Resources website at www.hr.upenn.edu/benefits to view rates for the new plan year.

Related: Did You Know? Health Advocacy Services; HR: Upcoming Programs

 

Almanac - May 25, 2010, Volume 56, No. 34