Employee Benefits Institute of America

Topics Covered

Here’s some of what was covered:

• What plan document rules apply to DCAP reimbursements, and what limits apply under the Code?
• When should an expense be treated as enabling the employee (or spouse) to be gainfully employed? What about full-time students or individuals looking for work?
• Who are qualifying individuals for DCAP purposes? What children qualify? What other persons may qualify (e.g., disabled parents)? What special rules apply for divorced or separated parents?
• When is an expense for “care”? What are the rules for overnight camps; goods and services incidental to care; and care provided by an employee’s child?
• When must DCAP expenses be incurred? When must care be provided and what issues are presented by pre-payment for care? What do the proposed cafeteria plan regulations say about “spend down” provisions?
• What participant certification and third-party substantiation requirements apply? What rules apply when debit cards are used to pay for DCAP expenses?
• How do nondiscrimination rules affect DCAP reimbursements?
• What makes DCAP expenses “difficult,” and how do you decide when difficult expenses should be reimbursed?