Dependent Care Reimbursement Account
What you need to know
The Dependent Care Reimbursement Account (DCRA) lets you set aside untaxed money to pay for eligible dependent care services such as pre-school, summer day camp, before- or after-school programs and child or elder daycare. It’s a simple, smart way to save money while taking care of your loved ones so you and your spouse can work or attend school full-time.
Who’s eligible
Most employees are eligible to participate in the DCRA. See the Summary Plan Description for details.
How it works
Decide how much to set aside
Each year, you can contribute up to the IRS limit of $5,000 ($2,500 if you’re married and file separate tax returns). This amount will be deducted from your paycheck in equal amounts and deposited in your DCRA throughout the year. Choose your contribution amount carefully — you can only change it during Annual Enrollment or if you have a qualified change in status.
Use the money for child or elder care throughout the year
You can use your DCRA to pay eligible daycare expenses for your children age 12 and under so you (and your spouse, if applicable) can work or attend school full-time. You can also use it for care for a dependent age 13 and over who is physically or mentally incapable of self-care, can be claimed as an exemption on your tax return and meets residence requirements. For a full list of eligible expenses, see IRS Publication 503, Child and Dependent Care Expenses.
Pay yourself back
You pay expenses up front and then request reimbursement. If there are not enough funds available in your DCRA to cover your claim, you’ll be reimbursed for the remaining amount as the funds become available. Be sure to save any receipts.
Use the funds by the deadline
Be sure to incur all expenses from January 1–December 31. Unused funds don’t roll over year-to-year.
You have until March 15 following the end of each plan year to submit claims for reimbursement. Any funds remaining in your account after the deadline will be forfeited, per the IRS.
What the DCRA can be used for
You can only use your DCRA funds for eligible child care or elder daycare expenses necessary for you to work, including:
- Daycare
- Summer camp (overnight camps aren’t eligible)
- Elder care
- Before-/after-school programs
The care must be provided at a licensed facility or by an eligible provider. For a full list of eligible expenses, see IRS Publication 503, Child and Dependent Care Expenses.
Top tip
You can have your DCRA reimbursements deposited directly into your bank account. Sign up on HealthEquity.com/Simplot.
Get started
- Open a Health Equity DCRA as a new hire, during Annual Enrollment or following a qualified life event by electing your payroll contributions by going to employee.simplot.com and clicking the Empyrean Benefits Enrollment tile.
- A HealthEquity Welcome Kit will be mailed to you. When you receive it, visit HealthEquity.com/Simplot.
- Click Log In, then click Create username and password and enter:
- Your first and last name
- Your date of birth
- Your ZIP code
- The last four digits of your Social Security number
- Your email address