About the Flexible Spending Plan:
The advantage of participating in a Flexible Benefits Plan is to lower your overall taxable income, thereby increasing your net take-home pay.
Health Care Expense Reimbursement Plan
You may elect to set aside dollars on a pre-tax basis to fund medical/dental expenses not covered under the group health care plans. The Health Care plan year election maximum is $1,500 for an employee who has worked at Cornish for less than one year; and $4,500 for an employee who has worked at Cornish for one or more years.
Dependent Care Expense Reimbursement Plan
You may elect to set aside money on a pre-tax basis for dependent care expenses (i.e. daycare or eldercare). If you elect to set money aside in the account, your eligibility for a Dependent Care Tax Credit on your tax return will be affected. Please consult with your tax advisor or accountant for details. The Dependent Care annual election maximum is $5,000 per calendar year.
Flexible Spending Plan Frequently Asked Questions:
What if the plan year ends and I haven’t used all the money I have contributed?
In the past, whatever funds had not been used, were forfeited. However, IRS rules have changed, and Cornish has elected to allow a 2.5 month extension of the plan year for the Health Care Expense Reimbursement Plan. This means that if you have not used all the money in your account, you have an additional 2.5 months after the plan year ends during which to incur and be reimbursed for eligible expenses under the plan.
How late can I submit a request for reimbursement from Benefit Administration Company?
You have 90 days after the end of the plan year to submit a reimbursement request of expenses that were incurred during the plan year.
Can I move money from my Health Care Account to my Dependent Care Account?
No. Money cannot be transferred between accounts. Dollars designated for health care can be spent for health care only, and dollars set aside for dependent care can be spent only on dependent care.
When can I change the amount of money I am putting towards my Health Care Account?
After making a salary-reduction election (pre-tax premiums) at the beginning of the Plan Year, no changes may be made unless there is a qualifying change in family status, as defined by the IRS. Examples include: Marriage, divorce, and birth of a child.
When can I change the amount of money I am putting towards my Dependent Care Account?
You may be allowed to change the amount of money you defer to the Dependent Care Account if your daycare expenses change or cease.
What expenses are not eligible for reimbursement?
Dependent Care: Expenses that are not reimbursable include overnight camp, diapers, late payment charges, and care provided while you and your spouse are not working.
Health Care: Examples of expenses that are not eligible for reimbursement include insurance premiums, most cosmetic procedures, and vitamins.
How do I submit for reimbursement?
Health Care Reimbursement Claim Forms may be obtain by clicking Health Care Expense Reimbursement Fill-In Form here and following the instructions on the form.
Dependent Care Reimbursement Claim Forms may be obtained by clicking Dependent Care Expense Reimbursement Claim Form here and following the instructions on the form.