Dependent care expenses must have been incurred during the plan year. A dependent care expense is incurred when the service that gives rise to the expense is provided; it doesn’t matter when the expense is paid, it’s the date of service that is important. If you have paid for the expense but if the services have not yet been rendered, then the expense has not been “incurred” for this purpose. A good example is where you pay for your child’s day care on the first of the month for care given during that month, but the expense has not yet been incurred until the end of that month. You may not be reimbursed for any expenses arising before the plan became effective, before your effective date in the plan or for any expenses incurred after the close of the plan year.
What happens to amounts left over in my accounts if they have not been used during the plan year?
Amounts not used cannot be returned to you nor can they be rolled over into the next plan year. You do have 90 days after the end of the plan year to submit claims/receipts to FlexBank for services that were incurred during the plan year.
Can I request reimbursement from my account this year for expenses I incurred in another year?
No. Dates of service must be during your employer’s plan year in order for them to be considered eligible for reimbursement.