Dependent Care Reimbursement Account (DCRA) Plan
This DCRA plan allows for monthly employee pre-tax
contributions to an account established for the reimbursement of
eligible dependent care expenses. Based on IRS regulations, the
CSU has set the DCRA employee annual contribution limit at $5,000.
However, employees who are married and file a separate tax return
are limited to an annual maximum of $2,500. If an employee or spouse's
earned income is less than $5,000 a year, the maximum contribution
is equal to that person's earned income.
On a monthly basis, employees can contribute an amount from a minimum
of $20 to a maximum of $416.66. Employees enrolling mid-year are
also limited to a maximum contribution of $416.66 per month. Contributions
must be made by payroll deduction. The monthly dollar amount selected
by the employee is deducted from the employee's salary before federal,
state and FICA taxes are withheld. All contributions are held in
an account until eligible expenses are incurred and claimed for