University employees may set aside pre-tax dollars in health care and/or dependent care reimbursement accounts, thereby reducing taxable income. Establishing either type of account constitutes a contract, and it must be renewed each calendar year. Heath care reimbursement funds may be used for medical costs not covered by insurance such as co-pays, deductibles, and vision care. Dependent care reimbursement funds may be used for child care cost of children under the age of 13. Both parents must work to qualify for the child care reimbursement benefit.

If the pre-tax dollars in either of these accounts are not used by December 31, the remaining funds are forfeited by the employee. If you don't use it, you lose it; be sure you do not over-fund these accounts.