By setting aside pre-tax money from your pay into the Health Care Reimbursement Account, you may later repay yourself for eligible expenses incurred in calendar year 2009 that are not covered by insurance.
What Can Reimbursement Accounts Do for You?
Take this Quiz, Discover How to Save Money
Duke faculty and staff members can protect part of their salary from taxes and keep
more money in their pockets by signing up for reimbursement accounts during open
enrollment for health benefits in October.
Two reimbursement accounts are offered: one for health care costs; the other for dependent
care expenses. These accounts allow participants to shelter some of their salary from taxes and use
it to pay for certain products or services.
Not sure how to use this tax-free money? Take this quiz to learn the benefits of enrolling in
health and dependent care reimbursement accounts.
If you meet eligibility requirements, a dependent care
reimbursement account can be used to pay for pre-school
tuition and for many before-or after-school care programs
or summer day camp expenses for children under age 13.
True or False?
Which item is not covered by a health care reimbursement account?
contact lenses and eyeglasses
toothpaste
mileage for travel to and from health treatment
hearing aids
mail-order prescriptions
co-pays and deductibles required by health insurance
over-the-counter cold medicine
If your spouse loses his/her job, which of the following is
not permitted with the dependent care reimbursement
account?
contacting Human Resources within 30 days to stop or reduce contributions
moving money in the account to your bank account
It pays to carefully calculate how much money to set
aside and protect from taxes because the Internal Revenue
Service has a "use it or lose it" rule for these accounts
each year.
True or False?
You can enroll in a health care reimbursement account
even if you don't have health insurance through Duke.
True or False?
The minimum amount you can deposit in a health care or dependent care reimbursement account each pay
period is:
$5 for employees paid biweekly, and $10.83 for employees paid monthly
$20 for employees paid biweekly, and $50 for employees paid monthly
Using the Wage Works debit card provided with a
healthcare reimbursement account means you don't have
to save receipts.
True or False?
If you are married, to be eligible for your family to use a
dependent care reimbursement account, your spouse must
have a job, be looking for a job or be a full-time student.
True or False?
Adult day care expenses for relatives are eligible for reimbursement through your dependent care
reimbursement account if:
the dependent lives with you
the dependent is claimed on your personal income taxes
the care is primarily custodial (not medical)
the care allows you (and your spouse, if married) to work
all of the above
How much is saved annually with reimbursement accounts depends on:
taxable income
amount of money deposited in accounts
how well you forecast expenses
all of the above
— Compiled by Marsha A. Green,
Office of Communication Services
ANSWERS
1. True; 2. b; 3. b. You cannot withdraw the money from the account except for eligible expenses; 4. True; 5. True; 6. a;
7. False. Always save receipts to verify expenses you claim are an eligible expense; 8. True. However, there are special exceptions
if your spouse is disabled; 9. e; 10. d.
