4.13 SR 05-06-2024 - Laserfiche WebLink

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© 2012 Hitesman & Wold, P.A. City of Elk River Flexible Benefits Plan 33 ARTICLE XV. DEPENDENT CARE EXPENSE REIMBURSEMENT PLAN 15.1 Purpose. The purpose of this Article is to provide Participants with the opportunity to be reimbursed for eligible Dependent Care Expenses as an Optional Benefit under the Plan. This Article is intended to qualify as a “dependent care assistance program” under Section 129 of the Code so that payments received under this portion of the Plan are excludable from the gross income of the Participant under Section 129(a) of the Code. This Dependent Care Expense Reimbursement Plan is not subject to ERISA. 15.2 Separate Written Plan. For purposes of Section 129 of the Code, this Article shall constitute a separate written plan providing reimbursement of certain Dependent Care Expenses. To the extent necessary, other provisions of the Plan are incorporated by reference. 15.3 Definitions. (a) Claims Run-out Period means the period beginning on the first day following the close of the Plan Year and ending on thirty (30) days from the close of the Plan Year. (b) Dependent Care Account (“DC Account”) means the record keeping account established by the Plan Administrator for each Plan Year for each Participant from whom an Election to create such an account is received. (c) Dependent Care Center shall have the meaning given such term in Sections 21(b)(2)(C) and 21(b)(2)(D) of the Code: a facility that (1) complies with all applicable laws and regulations of the state and town, city or village in which it is located; (2) provides care for more than six individuals (other than individuals who reside at the facility); and (3) receives a fee, payment or grant for providing services for any of the individuals (regardless of whether such facility is operated for profit). (d) Dependent Care Expenses means amounts paid by the Participant for services that would be considered employment-related expenses under Section 21(b)(2) of the Code, any applicable proposed or final regulations issued thereunder, or any guidance issued by the IRS interpreting or applying any of the foregoing. Employment-related expenses for purposes of this Plan include expenses incurred to enable a Participant to be Gainfully Employed during any period for which there are one or more Qualifying Individuals with respect to the Participant for (1) household services; and (2) care of a Qualifying Individual. However, employment-related expenses which are incurred for services outside the Participant’s household shall be considered Dependent Care Expenses only if incurred for the care of a Qualifying Individual described in Section 15.3(i)(1) below or a Qualifying Individual not described in Section 15.3(i)(1) below who regularly spends at least eight (8) hours each day in the Participant’s household. Dependent Care Expenses do not include expenses which are incurred for services provided by a Dependent Care Center if such center does not comply with all applicable laws and regulations of the applicable state or other unit of local government which regulates the center. In addition, Dependent Care Expenses shall not include any amounts paid to an individual who: (1) is a child of such Participant (within the meaning of Section 152(f)(1) of the Code) who is under the age of nineteen (19) at the close of such taxable year; (2) with respect to whom, for such taxable year, a deduction is allowable under Section 151(c) of the Code (relating to personal exemptions for dependents) to such Participant or the Spouse of such Participant; (3) is the Spouse of the Participant at any time during the taxable year; or Page 126 of 254