What is a Dependent Care Flexible Spending Account?

Jennifer Johns
Jennifer Johns
  • Updated


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.

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