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REIMBURSEMENT ACCOUNTS

Dependent Care Choice FSA Rules

The following rules are dictated by IRS regulations:

1. By enrolling in the plan, you authorize your employer to deduct your election amount from your paycheck on a pre-tax basis.
    
2. Your account can be used to pay for eligible services incurred while you are enrolled during the plan year. Expenses are considered incurred on the day of service, not when you are billed or pay.
    
3. Your account cannot be used to pay for expenses incurred before or after you are covered under this plan or for services you plan to receive in the future. If you must pay for a service in advance, you can file a claim for reimbursement only after you begin to receive that service.
    
4. You will need to provide the Social Security or Tax ID number of your dependent care provider to request payments or get reimbursed from your Dependent Care Reimbursement Account. You will also be required to report it to the IRS when you file your tax return form.
    
5. Your account can only be used to pay for work-related and eligible dependent care expenses for which you have not and will not seek reimbursement from any other plan or source.
    
6. You cannot take a deduction or a tax credit on your tax return form for any dependent care expense paid for through this account.
    
7. You are responsible for maintaining documentation (e.g. detailed receipts) to verify your expenses (the nature of each expense, the amount and the date incurred). Keep these with your other important tax papers for the calendar year.
    
8. You will have until April 15, 2008 (your Claim It by date) to get reimbursed from your account (by filing a Pay Me Back claim form) for eligible expenses incurred before December 31, 2007 (your Spend It by date). Both dates are displayed online and on your monthly account statement and subject to change should you stop participating in this plan before the end of the plan year.
    
9. Be sure to incur eligible expenses totaling your election amount before December 31, 2007 (your Spend It by date). Any balance remaining in your account after April 15, 2008 (your Claim It by date) cannot be rolled over or paid out to you and will be forfeited.
    
10. If you want to participate during the next plan year, you will need to reenroll during the open enrollment period. We are not allowed to keep you enrolled or automatically re-enroll you.
     
11. You may be able to enroll, change or cancel your enrollment during the plan year if you have experienced a qualified change as defined and if allowed by your employer's plan.
     
12. Participation in this plan reduces your taxable income and may affect other compensation-based benefits such as life, disability and Social Security.
     
13. Consult a tax advisor if you have any questions regarding your personal situation.

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