How the Plan Works
Duke Reimbursement Accounts offer you a chance to use part
of the money you would normally pay in taxes to pay health
care and dependent day care expenses. If you choose to
participate, you elect an amount for the University to deposit
from your paycheck-before federal, state and Social Security
taxes are withheld-to your Dependent Day Care and/or Health Care Reimbursement Accounts.
As a result, you pay no taxes on the money you put in your
accounts. This may also mean you pay less tax overall. So
you see, participating in this program can actually stretch
your income.
This is how the plan works:
You have until April 15 to submit claims
for expenses incurred in the prior plan
year. WageWorks will honor the
postmark date on your claims envelope. Prior year
claims postmarked after April 15 are not eligible for
reimbursement.
Remember, the cost of a service is incurred when
it is received. All expenses are reimbursed based on
the date that the service is received, not based on
when you are billed or when you pay for the service.
Deciding How Much to Deposit
You should consider the amount of expenses you anticipate during the plan
year. By planning carefully, you can benefit from tax savings with
little risk of forfeiting any money left in your account at
December 31, as required by IRC regulations. The maximum you can contribute to
your Health Care Reimbursement Account during the plan year (January 1 -
December 1) is $4,000 and the maximum for the Dependent Care Account is $5,000.
The minimum you can contribute to both accounts is $5.00 per pay period for
employees paid biweekly, and $10.83 for employees paid monthly.
As required by tax laws, the money in your Health Care
Reimbursement Account can only be used to pay you back
for medical and dental expenses. Similarly, your Dependent
Care Reimbursement Account can only be used to
pay you back for eligible day care expenses. In other
words, shifting money between the two accounts
is not allowed.
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