Overview
A Dependent Care Flexible Spending Account (FSA) is a type of account, provided by your employer, that allows you to put aside money to pay for dependent daycare expenses. The money going into the account is tax-free (no payroll tax is withheld), saving you money on items and services you are already purchasing. Enrolling in a flexible spending account may save up to 40% on your dependent daycare costs.
A Dependent Care Flexible Spending Account reimburses eligible daycare expenses for you and your tax dependents, including adult daycare.
Important Facts About Dependent Care Flexible Spending Accounts:
- Enrollment in a health plan is not needed
- The IRS sets an annual contribution limit of $5,000 per household.
- Reimburses eligible dependent day care expenses, including adult day care if incapacitated so that you and/or your spouse can work, look for work, or be a full-time student.
If you are enrolled in a Dependent Care Flexible Spending Account, you can access your account, tools, and resources anytime at www.BenefitResource.com or 800.473.9595.
For more information about eligible expenses under a Dependent Care FSA, please refer to IRS Publication 502.