Dependent Care Flexible Spending Account

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.

What does it cover? 

• Childcare center, babysitter, nanny (birth through age 12)
• Summer day camp
• Before- or after-school care
• Disabled dependent and/or spouse care
• Elder care

The IRS sets the maximum dollar amount you can elect and contribute to a Dependent Care FSA. The current annual contribution limit (2024) 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.

Please note, you cannot make a Dependent Care election change mid-year unless you experience a Qualifying Event. Some Qualifying Event examples would be:

• Change in marital status
• Change in the number of dependents (Birth, Adoption, Marriage, Divorce, etc.)
• Gain/loss of eligibility due to a change in participant/spouse/dependent employment status
• Judgement, decree or order requiring a change in coverage