Flexible Spending – Dependent Care
I am a WGN radio listener and enjoy anytime I hear you on with John Williams. We currently have $650 in a flex spending account for dependent care. We use the money each summer for a YMCA day time summer camp while the kids are out of school. We stopped the election as soon as Covid-19 hit in March. They let us stop the election due to the unusual circumstances. I have been working from home since we were shut down in March. Because I am home, we have no use for the flexible spending. Am I really out this $650? Is there nothing I can do to retain this money? The plan ends 10/31/20. Thanks!
Terry Says
First, contact your employer and make sure that although this flexible spending plan is “designated” for child care expenses you cannot use it for other Flex Spending things, like healthcare expenses. Get that in writing from your employer, NOW.
Then contact the YMCA camp and offer to prepay next year’s expenses. They will be delighted to get the money in advance. And if there is no camp next year, they may push it to the following year as a credit. Or find another opportunity (Kumon’s learning centers, now virtual) that would qualify if the money is restricted to childcare expenses. That’s better than simply allowing it to expire.
