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.
Full Version: Dependent Care Reimbursement
QUOTE (kplymyer @ Mar 20 2007, 06:40 AM) 
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.
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.
To add to Presson's correct reply, the dollars can be claimed as soon as the expense is incurred.
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