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Spending Account Highlights

The facts below cover the spending accounts in general. Please see the start of each account section, for more detailed highlights specific to each account.
How You Save
The accounts help you save money because you contribute to the accounts on a before-tax basis. This means that the money in the accounts that you use to pay for eligible expenses is not subject to most income taxes. See "How You Save: Spending Accounts and Taxes" for an example of these savings.
How You Might Lose Your Contributions
For the Health Care and Dependent Care Spending Accounts, if you don't use your contributions to cover eligible expenses by the deadlines, your contributions can be forfeited. Please plan carefully to ensure you apply for reimbursement on time.
For the Health Care Spending Account, please see "The "Use It or Lose It" Rule."
For the Dependent Care Spending Account, please see "The "Use It or Lose It" Rule."
For the Transportation Account, please see "Unused Before-Tax Dollars."
Accounts Are Not Transferrable
The contributions you make to one of the accounts cannot be transferred to another one of the accounts, and they can only be used for eligible expenses under that account. For example:
  • You cannot transfer Dependent Care Spending Account funds to your Health Care Spending Account.
  • You cannot cover eligible Health Care Spending Account expenses with funds from your Dependent Care Spending Account.
Health Care Spending Account
You can contribute between $240 and $2,700 a year on a before-tax basis to pay for eligible out-of-pocket health care expenses for you or your tax dependents, provided those expenses are incurred during the plan year (January 1 – December 31). Eligible expenses include many medical, prescription drug, dental and vision expenses.
You have until March 31 of the year following the plan year to submit eligible claims for reimbursement.
Internal Revenue Service rules provide that you can carry over to the following plan year up to $500 of any balance not used for eligible expenses. Any additional balance over $500 will be forfeited and may not be used for expenses incurred in the following plan year.
Please Note: If you are enrolled in the JPMorgan Chase Medical Plan, funds in your Medical Reimbursement Account (MRA) will be used to pay for eligible medical and prescription drug expenses before your Health Care Spending Account funds are used. You need to carefully consider the amount you plan to contribute to the Health Care Spending Account in order to avoid having to forfeit a leftover balance that exceeds $500.
Dependent Care Spending Account
You generally can contribute between $240 and $5,000 a year on a before-tax basis, subject to certain limits required under the Internal Revenue Code (IRC) with respect to before-tax contributions for highly compensated employees (W-2 compensation $120,000 or more in 2018). The contributions can be used to pay for eligible dependent care expenses incurred during the plan year (January 1 – December 31).
You have until March 31 of the year following the plan year to submit eligible claims for reimbursement.
You must provide the taxpayer identification number or Social Security number of any day care provider that you may use for an eligible tax dependent.
Any balance not used for eligible expenses incurred during the plan year (January 1 – December 31) will be forfeited and may not be used for expenses incurred in the following plan year.
Transportation Spending Accounts
The Transportation Spending Accounts include a Transit Account and a Parking Account. You can participate in either or both accounts.
  • Transit Account. You can generally contribute up to $265 a month on a before-tax basis for eligible mass transit passes (for example, commuter bus, train, subway, ferry passes, tickets and vouchers) or vanpooling expenses.
  • Parking Account. You can contribute up to $265 a month on a before-tax basis for eligible parking expenses if you drive directly to work or to a location from which you commute to work at JPMorgan Chase (for example, park and ride).
You can contribute on a before-tax basis to either account.
If your commuting/parking costs exceed the legal before-tax monthly limits under the Transportation Spending Accounts, those additional costs will automatically be deducted through payroll deductions on an after-tax basis.
Contribution Limits May Change
The maximum before-tax contribution amounts shown here are legal limits for the calendar year 2019. The limits may change periodically subject to Internal Revenue Service (IRS) regulations.
No Impact on Your Other JPMorgan Chase Benefits
Your before-tax contributions to your spending accounts do not affect your other pay-related benefits at JPMorgan Chase. Your benefits under the 401(k) Savings Plan, Retirement Plan, Life and Accident Insurance Plans, Short-Term Disability Plan and Long-Term Disability Plan will continue to be based on your full, unreduced benefits pay.

 
How You Save: Spending Accounts and Taxes
Spending accounts save you money because the money that goes into the account on a before-tax basis reduces your taxable income. You use the money in the account to reimburse yourself for eligible expenses. You save because you owe less in taxes, and in most locations the savings apply to state and local income taxes, as well as federal income taxes and Social Security and Medicare taxes.
Remember, if you pay for expenses using a spending account, you can't take a tax deduction or credit for those expenses when you file your taxes.
JPMorgan Chase cannot offer tax advice. You should consult your tax advisor about whether you are better off using spending accounts or tax deductions and/or credits.