Adoption Advantage Account

In the process of adopting? The Adoption Advantage Account can help ease the financial load. Eligible employees can set aside up to $17,670 in pre-tax payroll deductions to cover qualified adoption expenses. While Social Security taxes still apply, you’ll save on federal and state (where applicable) income taxes.

Adoption is open to New York State employees of Executive Branch state agencies, the State University of New York, the Legislature, and the Unified Court System.

•All negotiating units in the Unified Court System are eligible to participate.
•Employees of the Roswell Park Comprehensive Cancer Center, NYS Energy Research and Development Authority (NYSERDA), and Environmental Facilities Corporation (EFC) are also eligible to participate.

Who is Not Eligible to Enroll?
Employees of New York Liquidation Bureau are not eligible to participate in the Adoption Advantage Account.

Enrollment Rules to Know
• You can enroll—or stop contributions—within 60 days of starting or ending adoption proceedings. Only expenses incurred after you enroll are eligible for reimbursement.
• Deductions are not refundable—unused funds will be forfeited to the plan.
• You can only be reimbursed for amounts already contributed to your account.

Who Is an Eligible Child?
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 step-child. 

Eligible Expenses
You can use your account to pay for a wide range of adoption-related expenses, including:
• Home study and application fees
• Reasonable and necessary legal adoption fees
• Court and attorney costs
• Agency fees
• Medical services for children with special needs
• Travel and lodging
• Other expenses directly related to, and for the principal purpose of, a legal adoption

Qualifying Life Event (QLE)
QLE enrollments will be accepted during the plan year between January 1–October 31. If you have questions, contact the FSA administrator at 800-358-7202.

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

What To Do at Tax Time
Adoption: When you receive your W-2, 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 you file your Federal Tax Income Return.

Please consult your tax preparer, tax attorney, or accountant if you have questions regarding your specific tax situation.

Extended Coverage Options

Pre-Pay: This option is only available to you during Open Enrollment. You can contribute your full annual election before you leave the payroll, which will allow you to use your account for expenses incurred after you leave. During open enrollment, make sure to indicate the number of paychecks you expect to receive prior to your official termination from the NYS payroll.

Continuation of Coverage: You continue to contribute to the HCSA after you leave the payroll by making after-tax payments directly to the FSA administrator; you will be able to submit claims for services that occur after you leave NYS. The FSA administrator will send you a notice to elect continuation of coverage that you must sign and return by the specified deadline.

Leave Without Pay or Termination
If you retire, leave state employment, go on leave without pay, or otherwise stop contributing to your account, your deductions will stop. 

Your coverage will continue and eligible expenses that are received from your initial eligibility date through March 15, 2027, will be reimbursed.

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.

Returning to Payroll
If you return to the payroll and have missed a deduction, you may re-enroll to restart your deductions by submitting a QLE election within 60 calendar days of your return
to work.

If you have a question about your situation, contact the FSA administrator at 800-358-7202.