Learn what happens to my pre-tax accounts if I retire in 2025.

Pre-tax Medical Dental Expense Account (MDEA)

You can sign up for an account for 2025. Before you retire, you must take action to keep this account open through the end of the calendar year. If you do not take action:

• The account is closed on the day you retire. 
• The debit card is turned off on the day you retire.
• You can only submit expenses for reimbursement if the service dates are before your retirement.
• If you have money in the closed account, you lose it because MDEA is a “use it or lose it” benefit.

If you want to keep the account open past your retirement date, you must either:

1. Ask SEGIP to deduct all your MDEA contributions remaining for the year from one paycheck. Here’s how:

• Email segip.mmb@state.mn.us from your work email address at least 30 days before you retire.
• Ask SEGIP to deduct a lump sum of your remaining contributions.
• The full amount is usually subtracted from your second-to-last paycheck.
• Your account will stay open until Dec. 31.

This option lets you use the money remaining in your account. You also receive the tax benefit.

2. Sign up through COBRA to continue the account month-to-month. 

• You will get a bill each month from SEGIP for your MDEA contribution.
• You pay SEGIP directly.
• Your account will be available to you each month after payment is received.

This option lets you use the money remaining in your account if you continue to pay the bill. You do not receive the tax benefit.

Dependent Care Expense Account (DCEA)

You can sign up for this account for 2025. However, this benefit cannot be continued after you retire. You may submit expenses for dates through Dec. 31 of the year you retire. You lose any funds remaining in the account if you do not submit expenses. 

Transit Expense Accounts

You can sign up for this account for 2025. However, this benefit cannot be continued after you retire. The Parking Expense Account (PKEA) and/or the Mass Transit (Bus pass)/Vanpool Expense Account (BVEA) close on the day you retire. You lose any funds remaining in the account.

Learn More

• The rules for eligible expenses stay the same before you retire and after.
• Go to SEGIP's website for information if you have a health savings account.
• Pre-tax benefits end the year you retire. If you have money remaining in your account, you lose it. There is no carryover to 2026.

Learn more on the pre-tax vendor’s website in the Summary of Benefits.