Flexible Spending Accounts (FSA)
Dependent Care FSA
Save up to $1,500 on dependent care expenses this year!
Participating in a dependent care flexible spending account (DCA) is like receiving a 30% discount from your care provider.
How does a dependent care FSA work?
A dependent care FSA is a flexible spending account that allows you to set aside pre-tax dollars for dependent care expenses, such as daycare, that allow you to work or look for work.
You choose an annual election amount, up to $5,000 per family. The money is placed in your account via payroll deduction, in equal installments, and then used to pay for eligible dependent care expenses incurred during the plan year.
Why should I enroll in a dependent care FSA?
Child and dependent care is a large expense for many families. Millions of people rely on child care to be able to work, while others are responsible for older parents or disabled family members.
If you pay for care of dependents in order to work, you’ll want to take advantage of the savings this plan offers. Money contributed to a dependent care account is free from federal and most state taxes and remains tax-free when it is spent on eligible expenses. On average, participants enjoy a 30% tax savings on their annual contribution. This means you could be saving up to $1,500 per year on dependent care expenses!
– Your qualifying child under the age of 13
– Your spouse or qualifying adult child or relative who is physically or mentally incapable of self-care
*additional restrictions may apply. See Internal Revenue Code Section 152.
How do I use my DCA to pay for dependent care expenses?
You can use your Flex Facts Debit Card to pay your provider for eligible dependent care expenses, or pay with your personal funds and submit a claim for reimbursement.
Dependent care FSA funds can cover costs for:
– Before school or after school care for children 12 and younger
– Custodial care for dependent adults
– Licensed day care centers
– Nanny / Au Pair
– Nursery schools or preschools
– Late pick-up fees
– Summer or holiday day camps
What doesn’t qualify?
Certain expenses are not eligible, for instance:
– Expenses incurred in a prior plan year
– Expenses for non-disabled children 13 and older
– Educational expenses including kindergarten or private school tuition fees
– Food, clothing, sports lessons, field trips, and entertainment
– Overnight camp expenses
– Late payment fees for child care
A comprehensive list of eligible expenses can be found at flexfacts.com.
Online & mobile access
Get instant access to your account with the Flex Facts Portal and Mobile App.
– View your account balance and transaction history
– Submit and view claims
– Upload and store receipts
– View important alerts and communications
– Sign up for direct deposit
– Sign up for text message alerts
Register for the Flex facts Participant Portal at www.flexfacts.com
Download the Flex Facts Mobile App on the App Store or Google Play store
– You must have funds in your dependent care FSA before you can spend them.
– You can’t change your election amount during the plan year, unless you experience a change in status or qualifying event.
– Keep your receipts, as you will need an itemized invoice for all reimbursement requests.
– If your employment terminates before the end of the plan year, your account will be terminated.
– Any unused funds that remain in your account at the end of the year will be forfeited (also known as the use-it-or-lose-it rule).