Reimbursement Accounts - Important Considerations
Based on federal government and State plan rules:
- You must use any money you contribute to a Medical Reimbursement Account
or a Dependent Care Reimbursement Account on expenses incurred by the
end of the plan year - December 31, 2008 - and submit your claim by
the April 15, 2009, deadline or it will be forfeited.
- You cannot move money between the two accounts during the year. This
means you can't use your contributions to a Medical Reimbursement Account
for a dependent care expense or vice versa.
- You cannot change your Reimbursement Account contributions during
the plan year unless you have a qualifying
status change event.
- You cannot enroll in both a Medical Reimbursement Account and a Health
Savings Account (HSA). If you have enrolled in a Health Investor medical
plan, you may want to consider enrolling in the HSA to take advantage
of the State's contribution to that account, and make contributions
to that account first, since it carries forward year-to-year and earns
interest. You also could enroll in the Limited Purpose Medical Reimbursement
Account to cover any eligible dental, vision, preventive medical care
and over-the-counter medical expenses above the HSA contribution limit.
If you enroll in both, you decide when to use your HSA and when to file
a Limited Purpose Medical Reimbursement Account claim.
- A person cannot enroll in both a Medical Reimbursement Account and
a Limited Purpose Medical Reimbursement Account.
- Minimum annual deduction amount for each Reimbursement Account is
$60.
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