What is to 'Capitalize'. Capitalize is an accounting method used to delay the recognition of expenses by recording the expense as a long-term asset. In general, capitalizing expenses is beneficial as companies acquiring new assets with a long-term lifespan can spread out the cost.
For orthodontics, most, if not all plans have a lifetime maximum amount that the carrier will pay for treatment. This is typically anywhere from $750 to $4000 and the patient is responsible for the remainder of the orthodontic cost.
Maximum Dollar Limits. Annual catch-up contribution limit for 401(k), 403(b) or 457 savings plans if employee is age 50 or over. Annual limit for combined employer - employee contributions to a defined contribution plan. Annual contribution limit to an Individual Retirement Account for individuals.