Important Rules

 
 

Benefits Summary Plan Description

Important Rules

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Important Rules

  • Must enroll annually — Participants must enroll during each Open Enrollment period in order to participate each calendar year.

  • No double dipping — Health care expenses reimbursed through the Health Care Flexible Spending Account and dependent care expenses reimbursed through the Dependent (Day) Care Flexible Spending Account cannot also be deducted on federal income tax returns.

  • No transferring of funds — Transfers of funds from the Health Care Flexible Spending Account to the Dependent (Day) Care Flexible Spending Account and vice versa are not permitted.

  • Use it or lose it — Estimate annual dependent (day) care expenses carefully! Any money put aside in a Flexible Spending Account must be used for eligible dependent care expenses incurred between January 1 and December 31 (or during the period of plan participation). April 30th of the following year is the deadline to submit claims for the current year's expenses.

  • Carry-Over Provision — IRS regulations specify that an employer may choose to provide a carry-over of unused funds to the next plan year. Starting in 2018, Leidos will allow active participants to carry over up to $500 of unused funds to be reimbursed for qualified medical expenses incurred in the following Plan Year. Any unused funds in excess of the carryover will be forfeited after the April 30th deadline to submit claims for the previous Plan Year.

  • Credit Balance at End of Coverage Period — Claims received by the Plan Administrator on or after the earlier of (a) 90 days after termination of employment, or (b) April 30 following the end of the Plan Year for expenses incurred during the prior Plan Year, will be considered untimely and not eligible for reimbursement under the Plan. If any balance remains credited to the Participant’s Health Care FSA after all reimbursements are made for that Plan Year, such balance in excess of $500 is not carried over to reimburse the Participant for Qualifying Medical Care Expenses incurred during the subsequent Plan Year, and is not available to the Participant in any other form or manner. Instead such balance remains the property of Leidos and the Participant forfeits all rights with respect to such balance.

  • Continuation of Coverage — Participants who would lose coverage under the Health Care FSA as a result of a qualifying life event can elect, within a stated election period, continuation of coverage of benefits previously received under the Health Care FSA. If a participant timely elects continuation of coverage under COBRA, the benefits elected will be available for the time period prescribed by law (i.e., the end of the Plan Year). In addition, the Plan allows participants to carry-over up to $500 of any amount remaining in their Health Care FSA as of the end of the calendar year in which the individual became eligible for continuation of coverage. Such carry-over amount may be used to pay or reimburse medical expenses incurred during the maximum duration of the COBRA continuation period (i.e., 18, 29, or 36 months, as applicable). Any unused amount of more than $500 remaining in the Health Care FSA at the end of the calendar year in which the participant became eligible for continuation of coverage will be forfeited.