If an employer is on a fiscal year rather than a calendar year, the deadline date for treatment is the last day of the final fiscal month, with the 90-day payout period following that. This requirement prompts a mad December dash to medical offices, especially optometrists and dentists. Planning prevents wasted accounts Not everyone gets the needed appointment. This means you shouldn't decide how much to contribute without first carefully reviewing your personal and family medical needs. A quick review of last year's medical costs is a good place to start.
Businesses generally use the leftover money to help defray administrative costs of the program.
In some instances, employers allow workers to designate a charity to which the unused funds are sent. Other account drawbacks There also is limited opportunity to refine your spending plan participation. This means that even if your mother comes to live with you and now takes care of the kids, you still must make your regular dependent care contributions. For most companies, the deadline is Dec. 31. But some operate on a fiscal, rather than calendar year, so check with your benefits manager for your business' benefits deadline.