Dependent Care Flexible Spending Account

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A Dependent Care FSA is a benefit that allows you to choose how much of your paycheck you’d like to set aside, before taxes are taken out, for eligible dependent care expenses each year. The Dependent Care FSA lets you pay for eligible dependent care expenses while you reap the benefits of additional tax savings. You’re spending the money either way. This way, eligible childcare and other dependent care costs are a little less.

The IRS sets the maximum dollar amount you can elect and contribute to a Dependent Care FSA. The current annual contribution limit is:

• Per household: $5,000

• Per person (if married and filing separately): $2,500

Funds available as you contribute. Funds will be available to you as they’re deducted from your paycheck and contributed to the plan. This means when payroll is processed and your paycheck is available to you, your Dependent Care contributions will be applied to your account and available for reimbursement.

Changing your Dependent Care FSA election mid-year. In order to make changes to your election after open enrollment, you need to experience a qualifying life event.

Some Qualifying life event examples:

• Change in marital status
• Change in the number of dependents 

(Increase due to birth, adoption or marriage) or (Decrease due to death, divorce or loss of eligibility)

• Gain/loss of eligibility due to a change in participant or spouse employment status
• Change in daycare providers
• Child turning age 13
• Increase or decrease in the cost of qualifying daycare expenses