UW-Madison Payroll and Benefits Services :: Employee Reimbursement Accounts

Plan Overview

Description: The plan allows you to set aside pre-tax income for eligible medical and/or dependent care expenses.

Medical Expense Account covers eligible expenses not reimbursed by any medical, dental, or vision care plan.
Dependent Care Account covers eligible expenses for the physical care of the dependent, either inside or outside the home.

The minimum contribution for both accounts is $100.

The maximum contribution is:
$7,500 in a Medical Expense Reimbursement Account.
$5,000 in a Dependent Care Reimbursement Account.

Dependent Care Reimbursement Account contributions are subject to the following guidelines:

If you file your income taxes as “head of household” or “married, filing jointly” you can put up to $5,000 a year into your account. Note: If you and your spouse establish separate Dependent Care Reimbursement Accounts, the combined total may not exceed $5,000.
If either you or your spouse earn less than $5,000 a year, you can deposit only as much as the lower of the two incomes.
If you are married, but file a separate federal income tax return, you may deposit a maximum of $2,500 to your Dependent Care Reimbursement Account.
Note: If your spouse is a full-time student or incapable of selfcare, your maximum is $3,000 a year for one dependent and $5,000 a year for two or more dependents.
If you have only one eligible child, your maximum for IRS tax credit is $3,000, but you may set aside up to $5,000 through ERA if your tax filing status allows.

Note: The Dependent Care account is not for medical expenses incurred by dependents.

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