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© Hitesman & Wold, P.A. 2019 Cafeteria Plan Summary Description (3-11) 31 dependents) to a minimum of 20% of such expenses (producing a maximum credit of $600 for one dependent or $1,200 for two or more dependents.) The maximum 35% rate must be reduced by 1% (b ut not below 20%) for each $2,000 portion (or any fraction of $2,000) of your adjusted gross incomes over $15,000. 4.13 When would it be better for me to use the tax credit? In general, if your income tax bracket is 15% or less, it will be more advantageous for you to forego participation in the Dependent Care FSA, pay the expenses with after-tax dollars, and claim the dependent care tax credits. However, you should analyze your own situation carefully to determine which method is right for you. The actual dete rmination of the preferable method for treating benefit payments depends on a number of factors such as one’s tax filing status (e.g., married, single, head of household), number of dependents, etc. Each Participant will have to determine his or her tax po sition individually in order to make the decisions between taxable and tax -free benefits. If you are uncertain about whether to participate in this Dependent Care FSA or take the dependent care credit, you should consult your tax advisor. Please refer to Exhibit B for an example of how choosing between participating in the Dependent Care FSA and taking the household and dependent care tax credit will impact your disposable income. 4.14 What if I am no longer eligible? If your employment terminates or you otherwise cease to be eligible for coverage under the Dependent Care FSA, you may not make any further contributions to your account. However, you may continue to submit claims for reimbursement of Eligible Expenses incurred while you were a Participant until the expiration of the claims run out period. 4.15 What if I receive benefits in error? If a reimbursement is made by the Dependent Care FSA in excess of the amount to which you are entitled under the Dependent Care FSA, the Dependent Care FSA has the right to recover such overpayment. Repayment of an overpayment is a condition of participation in the Cafeteria Plan. 4.16 What if the dependent care expenses I incur during the Plan Year are less than the annual benefit I have elected? Any amounts remaining in your account attributable to a particular Plan Year shall be forfeited following the claims run-out period described in Section 3.6. You will not be entitled to receive any direct or indirect payment of any amount that represents the difference between the actual dependent care expenses you have incurred, on the one hand, and the annual benefit you have elected and paid for, on the other. If you do not use it, you lose it. 4.17 What reporting will I receive? The amounts reimbursed under this Dependent Care FSA for each calendar year will be reported on your W-2. If the actual amount paid is not known by the deadline for providing the W -2 (e.g., because of the claims run-out period), the Employer may report a reasonable estimate of the reimbursements that will be paid under the Dependent Care FSA for the year. A reasonable estimate may be the amount of benefits you elected under the Dependent Care FSA for the year.