Dependent Care Frequently Asked Questions**

I participate in my Company’s Dependent Care Assistance Program. With each pay period, funds are deducted and sent to Ameritas for disbursement to my account. Why does it seem to take so long to get reimbursed?
The money that is deducted from your paycheck does not immediately arrive at Ameritas. Several days will elapse from the date funds are deducted from your paycheck and the date Ameritas mails a reimbursement to you. Your Benefits Office or Personnel Department can tell you when funds are mailed to Ameritas for expense reimbursement. Different factors can also delay the process of expense reimbursement. The two biggest delays occur when -

Your company is renewing their business with Ameritas. Until all information requested for renewal is submitted to our office, we cannot go forward with the process. Quickly returning enrollment material to your Benefits Office will certainly speed up the process.

There are discrepancies in the monthly statement. The Ameritas Section 125 Administration staff must reconcile your company’s monthly statement to assure that the information and funds your Employer is sending matches the current information in our system. Additional information, incorrect dollar amounts and other statement discrepancies will delay the posting of funds and subsequently slow down the reimbursement process.

At Ameritas, we make every effort to expedite the Dependent Care Assistance reimbursements. We do understand the importance of this check.
 

Can I hold my receipts and file just before the end of the Plan Year? Also, how do I know when the Plan Year begins and ends?
While we do not recommend it, some participants retain their eligible receipts for Dependent Care Assistance and file at the end of their Plan Year. You also have a 90- day extension after your Plan Year ends to get all your information to us. But remember, only those receipts received in our office by close of business on the 90th day will be considered for reimbursement. Your Employer’s Plan Year is a 12 month period. Most begin in January and end in December, similar to the calendar year. BUT, your Employer may have a different beginning and ending month for your company’s Plan Year. You can always contact Ameritas Customer Service to determine the beginning and ending date of your Company’s Plan Year.

I overestimated my expenses for the year. I will have a balance in my account at the end of the year. Will those funds be returned to me?
Your Employer should have made it very clear during the Open Enrollment process that all funds remaining in the Dependent Care Assistance account, after the Plan Year ends, are returned to the Employer to offset the administrative costs of maintaining the plan in compliance with the IRS “use it or lose it” rule. It is for this reason that participants in the plan should always be certain that the amount they allocate for their account be slightly lower than what will actually be spent during the Plan Year.

My 16 year old niece has agreed to watch my 8 and 11 year old children after school. May I submit her charges as reimbursement on my Dependent Care Assistance Account?
Certainly, you may use a relative’s help with daycare. In order to be reimbursed remember to list the dates of service, the amount billed for the service and the Social Security Number of the relative providing the service. Also, inform that relative that their services are considered income by the IRS and must be declared.

I will be sending my 4 year old to pre-school in the fall. Are the tuition payments eligible for reimbursement under the Dependent Care Assistance plan?
Tuition payments are reimbursable through your Dependent Care Assistance plan so long as your child’s main purpose for being in pre-school is for daycare purposes. In other words, the child is in school because the parent(s) is/are at work and unable to care for the child. Supply charges and Registration fees are not eligible. Also, remember that the Dependent Care Assistance Plan cannot reimburse the full amount of the tuition even though you paid in full up front. The service MUST BE RENDERED BEFORE the reimbursement can take place and funds must be available in your Dependent Care Account. Unlike Medical Reimbursement, there is no advancement of funds.

During the summer break, my 12 year old attends riding camp for 2 weeks. Would this be considered an eligible Dependent Care Assistance expense?
The primary focus of the camp must be daycare related. Sending a child to an instructional camp is considered educational, and therefore not eligible according to IRS guidelines. Always keep in mind that the purpose of the Dependent Care Assistance Account is to provide working parents the opportunity to have pre-taxed dollars set aside to cover eligible daycare expenses for children ages 0 to 13. Additional information regarding eligible expenses is available to you by visiting www.irs.gov and printing Publication 503.

I am unhappy with the way my Dependent Care claims are being processed. Receipts that I thought were considered eligible are being denied by Ameritas. What steps can I take to have my account reviewed?
Your first step should be to contact Ameritas Customer Service (800 229-1024 or 210 357-1010 local). A Customer Service Representative (CSR) will have your file reviewed by the Section 125 Claims Processing Department. Be certain to inform the CSR what claims payments/denials you are disputing and if necessary, fax any additional supporting documentation.

If the claim remains denied, additional appeals must be done in writing. All appeals are addressed to the attention of the Claims Director and mailed to Ameritas Life Insurance Corp., P.O. Box 786010, San Antonio, TX 78278-6010. Your appeal must be submitted during the plan year in which the claim was incurred. If your appeal is submitted during the 90 day extension period (after end of plan year), the final decision must be reached before the 90th day. An extremely important point to consider if you wait until the end of the plan year to file your claims.