Plus key deadlines and rules to know.

Pre-tax accounts, also called flexible benefits, allow most employees to pay for work-related parking, transit, and day care expenses with money that isn’t taxed. The money you contribute to these accounts gets deducted from your paycheck before taxes are calculated.

You may use these accounts if you are eligible for benefits.

The IRS sets the rules. SEGIP does not have the authority to make exceptions.

• The rules vary by type of account. For example, accounts that help you pay transit and parking costs sometimes allow you to carry over money from one year to the next. But the dependent care expense account is use-it-or-lose-it—you forfeit any money left in the account at the end of the year.

• You need to keep detailed receipts. For dependent care accounts, credit card receipts do not provide the detail required. Your receipt must show who provided the service, the type of service, the date, and the cost. The rules for parking and transit accounts are different.

• Learn more before signing up. Make sure you understand all the rules and requirements before enrolling. Go to the Plan Summary to review the rules and other details. In some cases, you may want to consult a tax professional.

• Timing is everything. Learn the rules and follow them.

New or Increased Expenses for Child Care, Adult Care

A big change in your day care costs* for kids up to age 13 lets you sign up for or change a Dependent Care Expense Account (DCEA). You can use the DCEA for child care, before and after school care, summer camps, nursery school, in-home care, adult day care, and more. Check the DCEA worksheet to see if your costs count and if this account is a good fit for you.

Tip: Don't confuse the Dependent Care Expense Account with the Medical Dental Expense Account.

• Dependent Care covers employment-related expenses like day care for your children or other dependents. 

• Medical Dental covers health-related expenses for you, your children, or other dependents.

You need to know

You have 30 days to submit paperwork after a qualifying event. In this case, the qualifying event is the increase in costs, not the change to the telework policy. Some examples:

• Your day care costs increase May 15; your deadline is June 14.

• You start paying for an adult to receive care during the day beginning July 11; your deadline is August 10.

Your change is effective when SEGIP receives your form. Expenses before SEGIP receives your form cannot be reimbursed.

• You may submit the form shortly before the qualifying event date.

• If you wait to submit paperwork into your 30-day window, your effective date will be later.

• The Qualifying Event Date is the date the change happens.

• The “event that triggered this change” in this example is “Change in dependent care cost or provider (for DCEA elections only).”

The IRS allows families to contribute up to $5,000 a year in total to a Dependent Care Expense Account. This account is use-it-or-lose-it. You lose any money you don’t use by the end of the year. You cannot carry over any money to next year.

Watch your deadlines. Dec. 31, 2025 is the deadline to incur expenses. Feb. 28, 2026 is the deadline to ask for reimbursement for 2025 expenses.

Complete the Enroll/Change Form to open or change a Dependent Care Expense Account. Email the form to segip.mmb@state.mn.us. SEGIP will set up your payroll deductions and send the information to Benefit Resource, the administrator.

*If the provider who increases your cost is a relative, you may not qualify to make a change. Although payments to a relative, such as a parent or grandparent, are allowed, the IRS says an increase in what they charge you may not qualify to make changes to your account outside of open enrollment. Talk to a tax advisor.

New or Increased Expenses for Bus, Vanpool, Light Rail, Parking

Transit expense accounts help you pay for work-related bus, light rail, van pool, and parking costs. Employees who are eligible for benefits may open or change these accounts for future expenses throughout the year.

There are two transit expense accounts: the Parking Expense Account (PKEA) and the Bus /Vanpool Expense Account (BVEA).

You need to know

If you already have parking or transit costs deducted from your paycheck by your agency, you would not sign up for these Transit Expense Accounts unless you have additional work-related out-of-pocket parking or transit expenses.

• You may contribute up to $325 to each account each month. The minimum contribution each year is $50.

• Watch your deadlines. You must submit requests for reimbursement within 180 days of the date of the expense. The last day to submit requests for 2025 expenses is Feb. 28, 2026.

• Use the BRI debit card to pay for mass transit costs when you make your purchase. 

Complete the Transit Enroll/Change Form to open or change a Parking or Bus/Vanpool Expense Account. Email the form to segip.mmb@state.mn.us. SEGIP will set up your payroll deductions and send the information to the account administrator.

Other Transit Options if You Work Near the Capitol

The Department of Administration has options for getting to work. These include bus passes, bicycle to work resources, carpool and ride share services, and more. Check out the options, including a Metro Transit pass for $35 a month if you work on the Capitol Complex.