Home < Health and Welfare Benefits < Flexible Spending Accounts < How the Plan Works
You specify an amount to be taken from your paycheck each month and deposited in your Health Care Reimbursement Account and/or your Dependent Care Reimbursement Account. When you incur eligible expenses, you submit a claim form and appropriate documentation of these expenses to SHPS, Inc. SHPS then reimburses you from the funds in the appropriate account.
Because the HCRA and/or DepCare contributions are deducted from your paycheck before taxes are withheld, your taxable income is reduced, and you save money on taxes. Your savings will depend on your particular tax situation.
DepCare Contributions
You determine how much you want taken from your monthly paycheck(s), from a minimum of $180 per plan year up to the lesser of:
- $5,000 per plan year ($2,500 if you are married and filing a separate income tax return), or
- Your total earned income,
- Your spouse's total earned income,
- If your spouse is incapable of self-care or is a full-time student, you may claim up to $2,400 for one dependent or $4,800 if you claim two or more dependents.
If your spouse is also eligible to participate in a dependent care assistance plan, your combined contributions should not exceed the maximums stated above. Remember that you forfeit any money you don't use; so calculate your contributions carefully.
HCRA Contributions
You can contribute up to $5,000 per plan year. If both you and your spouse are UC employees, you may each contribute up to $5,000. You must contribute a minimum of $180 per year to participate.
Remember that you forfeit any money you don't use; so calculate your contributions carefully.
