Immense Dependent care savings plan failure, lost $5k

[Anonymous]

I failed to submit receipts for my dependent care savings account for 2016 by the march deadline and now my HR department says there's nothing they can do, I have entirely forfeited the $5k.

I feel absolutely sick to my stomach about this and am very angry with myself, and also at this idiotic system.

I have a couple of questions:

1. Does anyone know if it it absolutely true that I have no recourse? No way to pay a fine or penalty, get the money back minus taxes, etc? Do they have to allow me to appeal, and if so is there any point in doing so?

2. My employer does not provide balance statements about this program. I emailed the person in charge in January and asked her if I had submitted my receipts for 2016 because I assumed I had done it in early 2016 as I had done in previous years. She didn't respond. I should have followed up but did not. Does this matter to my ability to appeal or get my money back?

3. Relatedly, is it normal for employers to provide regular balance statements or reminders? At the very least even if I can't get any money back (sob), I want to advocate that my employer do basic things like this going forward so this will not happen to anyone else. An email saying "Hey you haven't submitted receipts for 2016, do it by next week or lose your money" would have been REALLY helpful.

[Anonymous]

Sorry! That's awful. The IRS really does restrict what employers can do and not jeopardize the plan's tax favorable status.

Anonymous wrote:I failed to submit receipts for my dependent care savings account for 2016 by the march deadline and now my HR department says there's nothing they can do, I have entirely forfeited the $5k.



I feel absolutely sick to my stomach about this and am very angry with myself, and also at this idiotic system.

I have a couple of questions:

1. Does anyone know if it it absolutely true that I have no recourse? No way to pay a fine or penalty, get the money back minus taxes, etc? Do they have to allow me to appeal, and if so is there any point in doing so?

-You can file the claim and when it is denied (maybe this happened already), you can appeal. You'll most likely lose your appeal.

2. My employer does not provide balance statements about this program. I emailed the person in charge in January and asked her if I had submitted my receipts for 2016 because I assumed I had done it in early 2016 as I had done in previous years. She didn't respond. I should have followed up but did not. Does this matter to my ability to appeal or get my money back?

-You can mention it in your appeal, but it doesn't seem compelling.

3. Relatedly, is it normal for employers to provide regular balance statements or reminders? At the very least even if I can't get any money back (sob), I want to advocate that my employer do basic things like this going forward so this will not happen to anyone else. An email saying "Hey you haven't submitted receipts for 2016, do it by next week or lose your money" would have been REALLY helpful.

-Our employer sends a reminder. I think it's an excellent idea to ask your employer to institute this practice.

[Anonymous]

Such a major bummer. I am sorry to hear that. If it makes you feel any better, I've done similar things! (At least we learn from our mistakes.)

I'm now pretty experienced with using the dependent care savings account because I'm 40 years old and have been doing the dependent care for many years.

My DH is a federal employee, and they send tons of reminders about claiming your funds by the deadline.

Don't be too hard on yourself. It happens to the best of us.

[Anonymous]

OP, do you have online access to the account? That's how I view how much I have and how much I've used. I file claims almost monthly because our kid's preschool sends out monthly receipts (also done through the same website). That really sucks though. I doubt you have any recourse.

[Anonymous]

OP here. I don't think we have online access to our accounts, not that anyone has ever told me anyway.

The ridiculous thing is I am also experienced at this--I'm almost 40 and have been doing dependent care savings accounts for about 4 years. In past years I've always just submitted 3 months' worth of daycare receipts at once early in the year. So this January I thought I had done that in early 2016 but wasnt totally sure, that's why I asked.

I feel like so much of my life revolves around to do lists, following up on un-responded to emails and voicemails, etc. Generally I do it all fine. If I had to screw something up why did it have to be on something with such high personal financial stakes?

Anyway, thank you for the responses. It will not help my family's finances any but if I get my employer to send reminders or statements in the future I will feel like some tiny good has come from this inanity.

[Anonymous]

When I did my taxes online it asked how much of my DCA I didn't use. It was $30, and I got $7 back in taxes.

[Anonymous]

My employer doesn't send reminders.

When I get the receipt, I take a picture of it (or scan it), and attached it to an outlook reminder for the last day of the month. For camp, put the reminder on the last day of the camp. That way, you don't forget to submit the receipt.

[Anonymous]

I don't use dependent care, but I know on our company intranet homepage, they start reminding you about 3 months out to get your shizz submitted and at the 30 day mark, there is a countdown, to the second, as to when the deadline is. I take it to mean they are serious about getting your receipts in!

[Anonymous]

Anonymous wrote:I failed to submit receipts for my dependent care savings account for 2016 by the march deadline and now my HR department says there's nothing they can do, I have entirely forfeited the $5k.

I feel absolutely sick to my stomach about this and am very angry with myself, and also at this idiotic system.

I have a couple of questions:

1. Does anyone know if it it absolutely true that I have no recourse? No way to pay a fine or penalty, get the money back minus taxes, etc? Do they have to allow me to appeal, and if so is there any point in doing so?

2. My employer does not provide balance statements about this program. I emailed the person in charge in January and asked her if I had submitted my receipts for 2016 because I assumed I had done it in early 2016 as I had done in previous years. She didn't respond. I should have followed up but did not. Does this matter to my ability to appeal or get my money back?

3. Relatedly, is it normal for employers to provide regular balance statements or reminders? At the very least even if I can't get any money back (sob), I want to advocate that my employer do basic things like this going forward so this will not happen to anyone else. An email saying "Hey you haven't submitted receipts for 2016, do it by next week or lose your money" would have been REALLY helpful.

Sorry to hear that. That is a bummer

These are typically run by a third party company and the only way they make money if savers like you either forget to claim or don't spend what they had put away.

Try this.. Check the account online. I'm sure you have online access.
If it is indeed being run by your company, forward the e-mail you had sent previously to HR up the chain and raise hell. Not a guarantee, but it just might work. If on the other hand it is being managed by an outside third party, they will just point fingers and do nothing about it.

I believe there are rules about them having to notify you about balances at least once before the end of the deadline though I'm not sure. Search the rules and see if they followed it. 5K is a lot of money. Hope you get it back.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I failed to submit receipts for my dependent care savings account for 2016 by the march deadline and now my HR department says there's nothing they can do, I have entirely forfeited the $5k.

I feel absolutely sick to my stomach about this and am very angry with myself, and also at this idiotic system.

I have a couple of questions:

1. Does anyone know if it it absolutely true that I have no recourse? No way to pay a fine or penalty, get the money back minus taxes, etc? Do they have to allow me to appeal, and if so is there any point in doing so?

2. My employer does not provide balance statements about this program. I emailed the person in charge in January and asked her if I had submitted my receipts for 2016 because I assumed I had done it in early 2016 as I had done in previous years. She didn't respond. I should have followed up but did not. Does this matter to my ability to appeal or get my money back?

3. Relatedly, is it normal for employers to provide regular balance statements or reminders? At the very least even if I can't get any money back (sob), I want to advocate that my employer do basic things like this going forward so this will not happen to anyone else. An email saying "Hey you haven't submitted receipts for 2016, do it by next week or lose your money" would have been REALLY helpful.

Sorry to hear that. That is a bummer

These are typically run by a third party company and the only way they make money if savers like you either forget to claim or don't spend what they had put away.

Try this.. Check the account online. I'm sure you have online access.
If it is indeed being run by your company, forward the e-mail you had sent previously to HR up the chain and raise hell. Not a guarantee, but it just might work. If on the other hand it is being managed by an outside third party, they will just point fingers and do nothing about it.

I believe there are rules about them having to notify you about balances at least once before the end of the deadline though I'm not sure. Search the rules and see if they followed it. 5K is a lot of money. Hope you get it back.

Raising hell about it in her company will only spotlight her irresponsibility. The higher-ups may ask, "If everyone else managed to get it done with the same set of circumstances, why couldn't she?"

I remember a young assistant missed several meetings, and then belly-ached afterwards, "Why wasn't I reminded??" No, sweetheart, it is your responsibility to remember. She didn't last long at the company.

[Anonymous]

our spending account balances show up on our paystub. No reminders though. I always submit at the end of the year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I failed to submit receipts for my dependent care savings account for 2016 by the march deadline and now my HR department says there's nothing they can do, I have entirely forfeited the $5k.

I feel absolutely sick to my stomach about this and am very angry with myself, and also at this idiotic system.

I have a couple of questions:

1. Does anyone know if it it absolutely true that I have no recourse? No way to pay a fine or penalty, get the money back minus taxes, etc? Do they have to allow me to appeal, and if so is there any point in doing so?

2. My employer does not provide balance statements about this program. I emailed the person in charge in January and asked her if I had submitted my receipts for 2016 because I assumed I had done it in early 2016 as I had done in previous years. She didn't respond. I should have followed up but did not. Does this matter to my ability to appeal or get my money back?

3. Relatedly, is it normal for employers to provide regular balance statements or reminders? At the very least even if I can't get any money back (sob), I want to advocate that my employer do basic things like this going forward so this will not happen to anyone else. An email saying "Hey you haven't submitted receipts for 2016, do it by next week or lose your money" would have been REALLY helpful.

Sorry to hear that. That is a bummer

These are typically run by a third party company and the only way they make money if savers like you either forget to claim or don't spend what they had put away.

Try this.. Check the account online. I'm sure you have online access.
If it is indeed being run by your company, forward the e-mail you had sent previously to HR up the chain and raise hell. Not a guarantee, but it just might work. If on the other hand it is being managed by an outside third party, they will just point fingers and do nothing about it.

I believe there are rules about them having to notify you about balances at least once before the end of the deadline though I'm not sure. Search the rules and see if they followed it. 5K is a lot of money. Hope you get it back.

Raising hell about it in her company will only spotlight her irresponsibility. The higher-ups may ask, "If everyone else managed to get it done with the same set of circumstances, why couldn't she?"

I remember a young assistant missed several meetings, and then belly-ached afterwards, "Why wasn't I reminded??" No, sweetheart, it is your responsibility to remember. She didn't last long at the company.

I'm not worried about this. I am a valuable employee. Also it would be ridiculous if someone held it against me that I made a mistake that hurt only myself and I am advocating for a simple change that would help others avoid the same mistake in the future.

[Anonymous]

Bet you won't forget again

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I failed to submit receipts for my dependent care savings account for 2016 by the march deadline and now my HR department says there's nothing they can do, I have entirely forfeited the $5k.

I feel absolutely sick to my stomach about this and am very angry with myself, and also at this idiotic system.

I have a couple of questions:

1. Does anyone know if it it absolutely true that I have no recourse? No way to pay a fine or penalty, get the money back minus taxes, etc? Do they have to allow me to appeal, and if so is there any point in doing so?

2. My employer does not provide balance statements about this program. I emailed the person in charge in January and asked her if I had submitted my receipts for 2016 because I assumed I had done it in early 2016 as I had done in previous years. She didn't respond. I should have followed up but did not. Does this matter to my ability to appeal or get my money back?

3. Relatedly, is it normal for employers to provide regular balance statements or reminders? At the very least even if I can't get any money back (sob), I want to advocate that my employer do basic things like this going forward so this will not happen to anyone else. An email saying "Hey you haven't submitted receipts for 2016, do it by next week or lose your money" would have been REALLY helpful.

Sorry to hear that. That is a bummer

These are typically run by a third party company and the only way they make money if savers like you either forget to claim or don't spend what they had put away.

Try this.. Check the account online. I'm sure you have online access.
If it is indeed being run by your company, forward the e-mail you had sent previously to HR up the chain and raise hell. Not a guarantee, but it just might work. If on the other hand it is being managed by an outside third party, they will just point fingers and do nothing about it.

I believe there are rules about them having to notify you about balances at least once before the end of the deadline though I'm not sure. Search the rules and see if they followed it. 5K is a lot of money. Hope you get it back.

Raising hell about it in her company will only spotlight her irresponsibility. The higher-ups may ask, "If everyone else managed to get it done with the same set of circumstances, why couldn't she?"

I remember a young assistant missed several meetings, and then belly-ached afterwards, "Why wasn't I reminded??" No, sweetheart, it is your responsibility to remember. She didn't last long at the company.

I'm not worried about this. I am a valuable employee. Also it would be ridiculous if someone held it against me that I made a mistake that hurt only myself and I am advocating for a simple change that would help others avoid the same mistake in the future.

If you say so.

[Anonymous]

Anonymous wrote:Bet you won't forget again

I agree, I won't.