adoption

Adoption Advantage Account

What Is The Adoption Advantage Account?

The Adoption Advantage Account lets you pay for expenses related to the adoption of an eligible child with pre-tax dollars. This account can help pay for a qualified adoption.

Who Is Eligible To Enroll?

Employees who work for Executive Branch state agencies, the State University of New York, the Legislature, and the Unified Court System are eligible to participate in the Adoption Advantage Account. Employees of NYSERDA, EFC, and Roswell Park Comprehensive Cancer Center can also participate.

What You Need To Know Before Enrolling

Eligible employees can enroll in a flexible spending account for expenses related to the adoption of an eligible child. Pre-tax payroll deductions contributed to the Adoption Advantage Account can help pay for a qualified adoption. Although you won’t save on social security taxes, you can save on federal and state taxes (where applicable) by having up to $17,280 withheld from your paycheck on a pre-tax basis


•Qualified adoption expenses are reasonable and necessary expenses directly related to, and for the principal purpose of, the legal adoption of an eligible child including the expenses listed above.
•An eligible child must be under the age of 18 or any disabled individual physically or mentally incapable of self-care and must not be a stepchild.
•You can enroll or stop deductions within 60 days of starting or stopping adoption proceedings. Accounts cannot be backdated so keep in mind only expenses incurred after you enroll will be eligible for reimbursement.
•Pre-tax deductions are not refundable for any reason. You can only be reimbursed from money already contributed to your Adoption Advantage Account.
•If you are unable to get reimbursed, you will forfeit the money back to the plan.
•You can have up to the maximum amount of the adoption tax credit withheld from your paycheck.
•Employees are responsible for understanding the tax treatment of reimbursement under this plan and for claiming the application income exclusion by filing IRS Form 8839 with their federal income tax return.

Qualified Adoption Expenses

•Home study and application fees
•Reasonable and necessary legal adoption fees
•Court costs
•Attorney fee
•Agency fees
•Medical services associated with a child with
special needs
•Travel and lodging fees
•Other expenses which are directly related to, and
for the principal purpose of, a legal adoption

Eligible Child

An eligible child is:

  • Any child under age 18. If the child turned 18 during the year, the child is an eligible child for the part of the year he or she was under age 18.
  • Any disabled individual physically or mentally unable to take care of themselves.

Qualifying Life Event

You must enroll during the open enrollment period if you would like to contribute to an FSA. Once enrolled in the FSA, you may not change your mind. Your pre-tax deductions will continue throughout the plan year. However, if you experience a Qualifying Life Event (QLE) during the plan year, you may be permitted to enroll or change your contribution amount, if it is consistent with the event.

To Submit a QLE or New Hire Application:

  1. Login to your Bentek account 
  2. From Employee Home, click on Life Events
  3. Click on (+) Life Events, then select the applicable event from the drop down and follow instructions to submit your event

Qualifying life event applications will be processed within 10-14 business days. You will receive notice from Bentek that your 2025 FSA election(s) have been updated. Your updated enrollment information will be available in your TASC account the Tuesday after your election(s) have
been updated.

If you are starting an account after the plan year has begun with an eligible qualifying event, your expenses will be eligible for reimbursement from the date your application is received or the date of your qualifying event, whichever is later, through March 15.

New employees must meet the eligibility criteria to participate. New employees are immediately eligible for this benefit, but must enroll within 60 calendar days, inclusive, of their hiring date. Your period of coverage will begin on your first day of employment or the date your QLE enrollment is received, whichever is later. The plan year contribution amount will then be prorated over the remaining pay periods in the calendar year. Deductions will start with the first payroll date that occurs after you become eligible to submit claims. You will be able to submit claims for eligible expenses incurred on or after that date through March 15 of the following plan year.

 

Payroll Changes

 

What happens if I leave the payroll during the plan year?

Leave Without Pay or Termination

Your DCAA coverage will continue and DCAA eligible expenses that are received from your initial eligibility date through December 31 of the plan year will be reimbursed.
If you return to the payroll and have missed a deduction, you may re-enroll to restart your deductions by submitting a QLE application within 60 calendar days of your return
to work. Your account will be re-established for the remainder of the plan year and your deductions will start with the first payroll date that occurs after you are eligible to submit claims.
Qualifying life event applications will be accepted during the plan year for events that occur on or before October 31. Applications received after that date cannot be processed in time for the last deduction of the year. If you have a question about your situation, contact the FSA administrator at 800-358-7202.

Leave With Pay
Payroll deductions will continue for participants on sick leave, sick leave at half-pay, and vacation provided there are sufficient funds in the paycheck. Deductions will not continue for employees receiving short- or long-term disability benefits through the Income Protection Plan (IPP). Some situations may be considered eligible qualifying events. If you have a question about your situation, contact the FSA administrator at 800-358-7202.

What To Do At Tax Time

When you receive your W-2 form, the salary reported in Box 1 will already be reduced to reflect your plan year contributions. You will also need to file IRS Form 8839 when your file your Federal Income Tax Return.
Please consult your tax preparer, tax attorney, or accountant if you have any questions regarding your filing requirements.