During open enrollment, you can enroll in a FlexElect dependent care reimbursement account. When you enroll, you specify an amount of money to be deducted from your paychecks in 2004 that you will use to pay for out-of-pocket dependent care expenses such as daycare for your kids under 13, elder care for dependent parents, or special care for a disabled spouse or other dependent.
Check with your personnel office for details and forms. You also can review the FlexElect handbook online.
Your FlexElect deductions are
pretax, which allows you to pay for certain expenses without having to pay
income taxes on that money. The process for using your FlexElect account is
easy: you simply submit a claim for reimbursement after you've incurred an
eligible expense, along with the receipt or other required documentation, then
a reimbursement check is mailed to you.
Before you enroll, be sure to
review the FlexElect materials carefully.
You can only use these FlexElect deductions to pay for qualified
dependent care expenses. If you don't claim the full amount of funds in your
FlexElect account by the deadline, you forfeit the remaining money. You can avoid
forfeiture by making sure the monthly deduction amount you authorize is well
within the amount you estimate you'll spend in 2004 on eligible expenses.