Immense Dependent care savings plan failure, lost $5k

[Anonymous]

Anonymous wrote: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.

If you thought you had submitted a claim in early 2016, wouldn't you have expected to get a check soon after?...which would have been almost a year ago??

I hope you have started to submit your 2017 claims already.

[Anonymous]

You didn't lose $5k- I think you lost $5k less whatever the tax would have been on that $5k. I could be wrong.

I had a year where the system crashed while I was doing my benefits enrollment and I didn't get signed up for the $5k. So I lost $5k x my tax rate. That was frustrating.

[Anonymous]

Husband is a fed, who is also the one who handles the dependent care account and our FSA. He says they get a million reminders. He also says that unlike the fsa, you can submit for reimbursement once you've spent $5k (and don't have to wait until you've deducted $5k for the DCA), so it totally behooves you to submit early in the year. This way you also have all year to remember.

[Anonymous]

Anonymous wrote:You didn't lose $5k- I think you lost $5k less whatever the tax would have been on that $5k. I could be wrong.

I had a year where the system crashed while I was doing my benefits enrollment and I didn't get signed up for the $5k. So I lost $5k x my tax rate. That was frustrating.

Yes that's right--the $5k was deducted from income on my w2 so we didn't pay taxes on it. Doing taxes is how I noticed this. But, if I had submitted receipts I would have gotten the entire $5k back. So in that sense I did lose the entire amount.

[Anonymous]

I don't have a dependent care account, but do have an FSA. My employer sends out reminder emails throughout the year and we are able to log onto our accounts online.

Sorry, OP. That really sucks. I would be so irritated.

[Anonymous]

Dependent FSA is reimbursed as you pay into it. Whenever I claim the full 5000 in the first half of the year, i get ~250 a month the second half of the year since they can only reimburse what I pay into it and the 5000 isnt fully there till the end of the year.

Didnt you notice you weren't getting those periodic payments like the prior years?

[Anonymous]

Anonymous wrote:Husband is a fed, who is also the one who handles the dependent care account and our FSA. He says they get a million reminders. He also says that unlike the fsa, you can submit for reimbursement once you've spent $5k (and don't have to wait until you've deducted $5k for the DCA), so it totally behooves you to submit early in the year. This way you also have all year to remember.

This. Inn a fed, and my agency doesn't ends reminders- the program does. I received at least three reminders about the March deadline.

[Anonymous]

Any chance you can claim it as dependent care credit? Or do you earn too much?

If you can and you've already filed your return, you can amend it.

[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.

There is a big difference between raising hell and suggesting that a reminder and/or a way to check online would be useful. The former would not likely go over well bc it was OP's responsibility and there is nothing the company can do at this point. The latter seems ok to me if phrased as trying to help people going forward.

[Anonymous]

Anonymous wrote:sorry, this sucks
the 'good' news is that it 'cost' you less that $5k because the funds were put in tax free.
not much you can do about it, unf--

Actually, it's worse because she diverted $5,000 in salary to this account and then paid another $5,000 out in child care without claiming the money from the account.

[Anonymous]

AM finding it hard to feel sympathy for OP. You had a year to claim these funds!

[Anonymous]

People - Give the OP a break... Jeez!

OP is aware of all the "you should have known better; you deserve to lose" crap. Probably heard it from the spouse.

Now that it has happened, what's the next step?

OP - Like the other poster said, contact HR and see if they can at least implement a reminder system for next year.

I don't know how high up you are nor how close to top management. Most decent companies have a feedback system to improve operations. HR being a freeloader /cost center operation is always sensitive to criticism. If this is indeed run by your company internally, there is potential wiggle room to get your money back if you talk to the right HR person. Meet with the head of HR or ask your boss who's at the same level to have a chat with that person. Maybe you can backdoor your receipts in and get the money back.

Before the rest of DCUM tries to throw me in jail.. yes, I know it is illegal (for the company) but when it's your money it's worth a shot.

[Anonymous]

My employer sends an email to everyone to remind them when the deadline to submit claims is coming up. They should absolutely do this.

But yes, we do all our FSA claims in the start of the year. We are already done with our $5k for this year. (SAD)

Try not to beat yourself up OP. It is an idiotic system, especially because you DID pay child care expenses.

[Anonymous]

I think you'll be able to do a write off of this loss on your 2017 return.

[Anonymous]

Anonymous wrote:Any chance you can claim it as dependent care credit? Or do you earn too much?

If you can and you've already filed your return, you can amend it.

You might be able to do this.

I could totally see myself doing this. I'm sorry.