Dependent care flexible spending accounts (FSAs) set the deadline for submitting requests for reimbursement. For example, a company’s plan may limit reimbursements to requests submitted within 30 days of the close of the year. The IRS has made it clear (INFO 2020-0005) that it lacks the authority to change the plan’s deadline for submissions. Employees with outstanding dependent care expenses should be mindful of the submission deadline.
Note: Medical FSAs can permit carryovers up to a set limit (e.g., $550 for unused amounts in 2020) if they do not provide for a grace period.
A portion of earnings withheld by an employer or put into a retirement plan for distribution to the employee at a later date. If certain legal requirements are met, the deferred amount is not taxable until actually paid, for example, after retirement.