Contribution
Limitations to the Dependent Care Reimbursement Account
If
you are married,
your contributions are limited to the least of the following:
- Your
earned income (after reductions in pay for contributions
to other benefit plans) for the plan year; or your spouse’s
earned income for the plan year.
Under
federal law, if your spouse is not employed during a month
that you incur eligible dependent care expenses, because
he/she is a full-time student or is incapacitated, your
spouse’s earned income for that month will be either:
- $200
if you incurred eligible expenses for one qualifying
individual; or
- $400
if you incurred eligible expenses for two or more qualifying
individuals.
If
you are single, your contributions may not be in excess
of your earned income (after reductions in taxable pay for
contributions to other benefit plans) for the plan year.
The
federal maximum contribution limit applies to contributions
made to this and other dependent care reimbursement accounts
you or your spouse participates in during a given year. Therefore,
if you start working at Boston University after the beginning
of the plan year and would like to participate in the Dependent
Care Reimbursement Account, you must consider any contributions
made to your previous employer’s dependent care plan when
determining your maximum contribution limit for this account.
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