Pre-Tax Expense Accounts: Making a Claim
The "Use It or Lose It" Rule
Due to an IRS regulation known as "use it or lose it", if you don’t use the full balance in your Pre-Tax Expense Account each plan year, you lose that unused money.
Follow these steps to be reimbursed for eligible expenses you incur:
- Save your original receipts.
- For health care claims: If any portion of the expense is covered under a medical, prescription, dental, or vision plan, submit the expense to the health plan carrier, and wait for the Explanation of Benefits (EOB).
- Fill out a Claim Reimbursement Form.
- Send the Claim Reimbursement Form, original receipts and original EOBs (if applicable) to ADP at:
ADP FSA Services
P.O. Box 1853
Alpharetta, GA 30023-1853
- Upon approval of the expenses, you’ll receive a check for the appropriate amount.
Make the process even more convenient by having your reimbursements directly deposited into either your checking or savings account. You won’t have to cash or deposit each reimbursement you receive, and your check won’t be delayed, destroyed, or lost in the mail. Sign up now.
Keep in mind that you’re reimbursed only for eligible expenses that you incur during the same plan year in which you make contributions as well as through September 15 following the end of that year.
Terminating Employment
If you leave the University, your contributions end with your final paycheck. You have until September 30 following the end of the plan year in which you terminate to claim expenses.
Health Care Pre-Tax Expense Account: You can submit claims that you incurred prior to leaving Penn (up to the balance in your account at the time you stopped participating). You can submit claims for expenses incurred after you leave the University (up to the end of the plan year in which you terminate) only if you elect to continue your contributions to the account under the Consolidated Omnibus Budget Reconciliation Act (COBRA).
Dependent Care Pre-Tax Expense Account: You can submit claims for expenses incurred through Sept. 15 following the end of the plan year in which you terminate (up to the balance in your account at the time you stopped participating). You cannot continue your contributions under COBRA.