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Flexible spending accounts

Overview

IBM offers two flexible spending accounts, designed to help you pay for certain health care and dependent care expenses with pre-tax dollars.

The Health Care Spending Account helps you save on eligible health care expenses not reimbursed by your health plans. You set aside a portion of your pay before taxes, then use that money to pay yourself back for health care expenses during the year. Participation is optional. If you decide to participate, you can contribute up to $5,100 annually — that's $425 per month.

The Dependent Care Spending Account helps you save on eligible day care, day camp, elder care and other dependent care expenses. You set aside a portion of your pay before taxes, then use that money to pay yourself back for eligible expenses. Participation is optional. If you decide to participate, you can contribute up to $5,000 annually per family.

Note: Flexible spending accounts will not reimburse eligible expenses for the care of a same-gender domestic partner unless he or she qualifies as a dependent under IRS regulations. Also, employees with domestic partners are not subject to the same Dependent Care Spending Account contribution limits in effect for married couples.

To help you understand the features of IBM's Flexible Spending Accounts, we've provided descriptions of each, along with a list of issues you may wish to consider as you evaluate whether one or both of these programs will meet your needs.

You can choose the Health Care Spending Account or the Health Savings Account — but not both!
If you want to enroll in the Health Care Spending Account, you'll need to choose a medical option other than the IBM High Deductible PPO with HSA. Based on IRS regulations, you may not enroll in both the Health Care Spending Account and the Health Savings Account at the same time.