You may contribute to the Plan through payroll deductions on a before-tax basis. When you have reimbursable dependent care expenses, you can receive your money back tax-free, up to the amount that is in your account when you ask for reimbursement.

The IRS allows you to contribute to this plan if:

You contribute to the Dependent Care Flexible Spending Account over a 12-month Plan year, from January 1 to December 31 (or fewer months, if you start or stop participating during the Plan year). You may use your Dependent Care Flexible Spending Account to be reimbursed for eligible expenses incurred during the Plan year. If you have a balance remaining in your Dependent Care Flexible Spending Account after December 31 of the Plan year, you have an additional 2-1/2 month grace period (until March 15 of the following Plan year) to incur eligible expenses (provided you were still participating on December 31 of the Plan year and excluding expenses incurred after your employment ends). You then have until May 31 to submit for reimbursement eligible expenses you incur during the Plan year and during the grace period.

In accordance with IRS rules, you will forfeit any account balance not used to pay eligible expenses incurred by March 15 of the following Plan year (the end of grace period) if they are not submitted by May 31.

Example: You can use your 2008 Dependent Care Flexible Spending Account to be reimbursed for eligible expenses incurred between January 1 and December 31, 2008 (the Plan year) or between January 1, 2009 and March 15, 2009 (the grace period). You must submit claims for those eligible expenses no later than May 31, 2009.