2024 Dependent Care FSA (DCFSA)
Participating in a Dependent Care Flexible Spending Account (DCFSA), is a way of putting
money aside
tax-free throughout the year, and then using those dollars throughout the year, to
pay for eligible dependent care needs, like those for child care or care for an elderly
or disabled family member.
Sentinel Benefits Contact Information
888-762-6088
https://www.sentinelgroup.com/
Sentinel Help Center
781-213-7301 (claims)
IMPORTANT-Use it or Lose it Deadline 3/31/24
This is an important reminder for those who have balances remaining in a 2023 Dependent Care FSA account. You have until 3/31/24 to submit eligible expenses (incurred between 1/1/23 and 3/15/24) for reimbursement with Sentinel Benefits. Unspent balances will be forfeited on 4/1/24.
WHAT IS CHANGING IN 2024?
NEW! Child Care Subsidy
Dartmouth is pleased to expand support for employees with legal dependents (up to
age 6) to help offset eligible pre-K child care expenses, such as licensed day care
centers. Dartmouth will contribute up to $4,000 for eligible employees when you elect
the Dependent Care Flexible Spending Account (DCFSA) for 2024. There is a limit of
one Subsidy per family, regardless of the number of eligible children. Fore more information
go to dartgo.org/child-care-subsidy
Understanding the Benefits
Flexible Spending Accounts are strictly regulated by the IRS. It is your responsibility to read and understand the information provided. For clarification about information on this webpage, please reach out to the Dartmouth Benefits Office. If you have specific questions around these IRS rules and regulations surrounding your DCFSA plan, you are advised to speak to your tax professional.
For more in-depth information about your plans and how they work, please read the information provided below.
IRS Guidelines
- Changes cannot be made to your annual contribution amount or start/stop an annual contribution to a DCFSA, without an IRS defined status change event. If eligible, changes must be made within 30 days of the event date. Please contact the Benefits Office if you believe you have had an IRS defined status change event that will allow for a change in your contribution.
- Child and dependent care expenses must be work related to qualify for reimbursement.
Expenses are considered work related only if both of the following are true.
- They allow you (or your spouse if filing jointly) to work or look for work.
- They are for a qualifying person's care.
- You may NOT contribute to your DCFSA account or receive the Child Care Subsidy while you or a spouse are not working (i.e., leave of absence, hiatus, unemployed,
etc.). Your spouse is treated as "working" during any month that he or she is:
- A full-time student, or
- Physically or mentally not able to care for themselves.
- Your spouse must also live with you for more than half the year.
- You MAY contribute to a DCFSA and receive Child Care Subsidy benefits if you need child care in order to work remotely.
- All DCFSA funds, including the Child Care Subsidy, must be spent within the same calendar year in which they are contributed. Claims must be submitted by March 31 of the following calendar year. Any remaining DCFSA account balance will be forfeited on April 1st. See below or more informatio on DCFSA filing deadlines
- The IRS annual maximum amount you may contribute to a DCFSA, including both the Dartmouth Child Care Subsidy and any pre-tax contributions you choose to make, is $5,000 for individuals or married couples filing jointly ($2,500 for a married person filing separately).
- The IRS holds participants enrolled in a DCFSA responsible for tracking their contribution limits. If your spouse/partner also is contributing to a Dependent Care FSA through their employer, it is important for you to take into consideration their contributions to ensure your household contributions do not exceed $5,00 annually.
- For additional details on the above IRS guidelines and more, please visit the IRS Publication 503
2024 Annual IRS Limit
Annual Limit per Household: $5,000
Married Couples filing separate: $2,500
Please be sure to include all of the following as part of your annual household contribution.
- The amount of money that you and your family are contributing through Dartmouth's DCFSA plan
- The amount of Childcare subsidy that your family is receiving from Dartmouth.
- The amount of money that you contributed through a former employer during the calendar year.
- The amount of subsidy that your family received from a former employer during the calendar year.
Note: Non-discrimination testing is performed annually as regulated by the IRS. Some highly compensated employees may be required to reduce their annual limit once preliminary testing has been completed.
Eligibility and Enrollment
- All benefits-eligible Faculty, Exempt, Non-Exempt and SEIU employees are eligible to contribute.
- Research Associate Bs and Research Fellows are not eligible to participate in the DCFSA.
- Please be sure to carefully review all of the IRS guideline information provided above.
- During Open Enrollment, or as a new hire, you must elect the DCFSA with Child Care Subsidy if you wish to contribute and/or receive the Child Care Subsidy.
- If you do not elect the DCFSA with Child Care Subsidy during Open Enrollment or as a new hire, you will not be able to receive the Subsidy, or contribute to a DCFSA for the calendar year, unless you experience an IRS defined status change.
- You must add your eligible dependent into FlexOnline when you enroll, if they are not already listed in the Family Info section, to receive the Child Care Subsidy.
Eligible Expenses
Child and dependent care expenses must be work related to qualify. Expenses are work related only if both the following are true:
- They allow you (or your spouse if filing jointly) to work or look for work.
- They are for a qualifying person's care.
For additional information, see Are These Work-Related Expenses?
Qualified dependent care expenses include:
- Child care services
- Nannies
- After-School Programs
- Summer Day Camps
- Adult Day centers for aging parents
- Nursing care for dependents with disabilities
- In some cases, you can count work-related payments to relatives who aren't your dependents, even if they live in your home. However, there are some exceptions, see Payments to Relatives or Dependents
For a list of the IRS's eligible Dependent Care Expenses, please click here.
Important Filing Deadlines
3/15/24 - 2023 DCFSA Grace Period Ends - This is the last day that you are allowed to incur
child care expenses that can be applied toward your remaining 2023 DCFSA balance.
3/31/24 - 2023 DCFSA Runout Period Ends - Last day to submit 2023 incurred DCFSA claims to
Sentinel Benefits for reimbursement. All 2024 incurred FSA claims filed after this
point, will be applied toward your 2024 elected account balance.
4/1/24 - 2023 incurred DCFSA claims will no longer be accepted by Sentinel Benefits. Any
remaining 2023 balance will be forfeited.
You do not need to report FSA contributions or expenditures to the IRS through your annual tax return.
Qualified Dependents
Expenses must be for the care of a dependent who is:
- Your qualifying dependent child who is at or under the age 12 at the time the care is provided
- a spouse, or eligible dependent who is over the age of 12 who isn't physically or mentally able to care for themselves and lived with you for more than half the year.
For additional guidelines and a sampling of scenarios, see Who is a Qualifying Person?
How the DCFSA Benefit Works
DCFSA Payroll Deduction - Money comes out of your paycheck each pay period, and goes into your DCFSA Account at Sentinel Benefits, reducing the amount of taxes you pay each pay period.
DCFSA-Child Care Subsidy Contribution - Each pay period Dartmouth makes a contribution to your DCFSA account. The amount contributed each pay period is based on the annual subsidy amount, determined by your annual base salary.
DCFSA Account is Funded - Dependent Care accounts are funded through payroll contributions. The amount contributed each pay period by the employee and Dartmouth is available as the funds are deposited.
Incur Eligible DCFSA Expenses - Your dependent will then receive eligible care as determined by the IRS, and the provider will submit an invoice for you to pay.
Pay your Day Care Provider - you may then use your Sentinel Debit card to pay your provider (if VISA is accepted) or you can pay out of pocket and submit a claim to Sentinel Benefits for reimbursement prior to the submission deadline of March 31, 2024.
Submit/File a Claim - You will need to supply supporting documentation to Sentinel Benefits for the money that is paid through the Sentinel Benefits debit card, or the funds that you pay out of pocket and request for reimbursement. Your day care provider does not send copies of your invoices to Sentinel Benefits. See Filing a claim below.
Claims Reimbursement Process - Claims can be submitted in amounts up to the full annual election amount and/or remaining balance. Reimbursement will be made based on your available account balance. If the claim amount is higher than the amount available in the account, additional reimbursement payments will be made to you, as additional funds are added to the account, until the claim has been paid in full.
Keep your DCFSA Receipts - You will need to keep your DCFSA receipts in case you are ever audited by the IRS, and for the purpose of filing claims to Sentinel for reimbursement.
DCFSA Deadlines - DCFSAs have filing deadlines regulated by the IRS. Any unclaimed balance remaining in your account at the end of the March 31st run out period will be forfeited. Please pay careful attention to the Important Filing Deadlines section above.
Create an Account
Set up your account with Sentinel and download the mobile app
1. Go to www.sentinelgroup.com (Chrome and Safari are the recommended browsers)
2. In the "I am an Individual" section, click on GET STARTED
3. From the LOGIN drop down, select "FSA, HSA, HRA, Commuter Accounts"
4. Under NEW USER select "Create your new Username and Password"
5. Enter your personal information.
In addition, you can also upload the Sentinel Accounts App onto your mobile phone for ease in claim monitoring and claim submission.
DCFSA Grace Period
The Dependent Care FSA has a 2.5-month grace period. A grace period is a timeframe in the new plan year during which you can incur new expenses and file claims. This timeframe is 2½ months after the end of the plan year (January 1st through March 15th). This means that you have until March 15th to incur new expenses and use any remaining monies left in your 2023 DCFSA account to pay them.
Filing a Claim
As your funds are deposited into your DCFSA account, you can then claim them for reimbursement from Sentinel Benefits.
There are three ways to file/submit claims through Sentinel Benefits.
- Sentinel Benefits VISA Debit Card - Use the Sentinel Benefits VISA debit card to pay the day care provider at the time of service. Then submit a copy of the receipt and DCFSA claim form (PDF) to Sentinel through Sentinel's online portal or through the phone app (PDF).
- Pay out of Pocket - Pay the day care provider out of pocket then submit a copy of the provider's receipt and DCFSA claim form (PDF) to Sentinel after the fact. Sentinel will reimburse you by check or or via direct deposit (typically within 3-5 business days).
- Unpaid Invoice - The IRS does not require that you show proof of payment to receive reimbursement. Send a copy of an unpaid day care provider invoice and DCFSA claim form (PDF) to Sentinel Benefits. Sentinel will reimburse you by way of direct deposit or paper check. You will then have funds available to pay your day care provider.
The following must be included with your claim submission:
1. Completed DCFSA claim form (PDF), including all claim information. Please note that the provider's Tax ID or
Social Security Number is REQUIRED to process the claim.
2. One of the following:
• Cancelled check or receipt from the caregiver detailing date(s) of service, name
of the service provider,
description of the expense/service, and amount charged; or
• Signature from caregiver certifying care provided.
Leaving Dartmouth
COBRA - Unlike the General-Purpose Health Care FSA, you may not continue your Dependent
Care FSA under COBRA. Expenses incurred after the last day of coverage will not be
approved.
Runout Period (Deadline to Submit Claims) - You will still have the runout period through March 31st of the following year to
submit your expenses manually through Sentinel.
Submitting for Reimbursement - The process does not change. You will continue to submit expenses to Sentinel using
the claim form.
Claim Form - Use this form when submitting DCFSA claims (PDF).
Child Care Subsidy - The subsidy will stop on the last day of the month in which you work. Since benefits
are paid in advance, you will NOT receive a contribution in your last pay check of
earned wages
For more information about COBRA benefits, and what to expect when leaving Dartmouth or losing benefit eligibility, please visit our Leaving Dartmouth webpage.
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