Eligible faculty and staff members may contribute a maximum of $5,000 per year to fund a Dependent Care Flexible Spending Account (DFSA). This amount is reduced to $2,500 per year if the employee is married and files a separate return. The combined DFSA benefit available to a married couple is $5,000 per year.
This account offers reimbursement for the costs of caring for covered dependent children under the age of 13 and other dependents who cannot be left alone while the employee and/or spouse is working or attending school full time.
Careful planning is essential when establishing a DFSA because any funds that are not used to reimburse eligible expenses by the plan year submission deadline are forfeited by the employee. The deadline for submission of reimbursement requests from a Lehigh DFSA is March 31st following the end of the calendar year in which the expense was incurred.
The Internal Revenue Service determines what supplies and services are eligible for reimbursement from DFSAs.
Employees should consult a tax advisor to determine if using the DFSA is more advantageous than the federal income tax credit related to dependent care.
* Effective December 7, 2009: first-time account registrants have the choice of providing their Ceridian Benefits Services Account ID instead of their Social Security number when logging into the Ceridian Web site for the first time. Other new security features include the separation of the User ID screnn from the password screen and the addition of a second security question.