Dependent Care Reimbursement

[Guest kplymyer]

I am new to the Cafeteria Plan and tried to read up on the information the employer gave me, but sometimes my interpretations are a little prejudice. If a participant elects $4,000 per year for dependent care, at what point may the participant request reimbursement? Total daycare expense to date is $1,500, but the participants account only holds $750. May the participant take out the full $1,500, or is the participant limited to $750, which is the account value.

Thank you for any assistance in answering this question.

[Bill Presson]

I am new to the Cafeteria Plan and tried to read up on the information the employer gave me, but sometimes my interpretations are a little prejudice. If a participant elects $4,000 per year for dependent care, at what point may the participant request reimbursement? Total daycare expense to date is $1,500, but the participants account only holds $750. May the participant take out the full $1,500, or is the participant limited to $750, which is the account value.

Thank you for any assistance in answering this question.

In the dependent care account, a participant can only be reimbursed the amount that they have contributed. In your example, it would be the $750.

[Jacmo]

To add to Presson's correct reply, the dollars can be claimed as soon as the expense is incurred.