This program lets you set aside pre-tax dollars to pay for adoption expenses.
The maximum annual election is $12,000.
Eligible expenses as defined by the IRS include:
- Attorney fees
- Court costs
- Counseling fee
- Traveling fees
For questions about other eligible expenses, please contact 121 Benefits FSA at 612-877-4321 or 1-800-300-1672.
If the eligible child is a U.S. citizen or resident of the United States, program participants can be reimbursed for eligible expenses from an adoption flexible spending account even if the adoption never becomes final. See IRS code section 137(a) (PDF).
If the eligible child is not a U.S. citizen or resident, participants cannot be reimbursed for eligible expenses from an adoption flexible spending account unless the adoption becomes final. Under IRS Code Section 137(a) (PDF), reimbursements of qualifying adoption expenses must have been incurred during the period of adoption flexible spending account coverage.
Enrollment and changes
Employees may enroll during the annual open enrollment period. To enroll mid-year or make changes, complete the mid-year change form (DOC).
Employees may change their elections for adoption flexible spending account benefits upon:
- The commencement of an adoption proceeding
- An increase in the number of the employee's dependents due to a placement for adoption or an adoption
- The termination of an adoption proceeding
The regulations also require any change due to the above events be on account of and consistent with the event. The regulations consider any change that affects eligibility or the amount of adoption expenses to correspond with the change in status.
For reimbursement, visit 121 Benefits for the adoption spending account form.
Deadline and grace period
To be reimbursed, claims must be incurred during the plan year (January 1 - December 31) or the following grace period (January 1 - March 15). Any unused funds will be forfeited.
All claims must be submitted to 121 Benefits by March 31 of the following year. For example, claims for expenses incurred in 2017 or the grace period must be submitted by March 31, 2018.