Dependent Care FSA

How FSAs Work

Dependent Care Flexible Spending Accounts (FSAs), administered by HealthEquity, allow you to set aside tax-free dollars to pay for eligible dependent care expenses.

All FSAs require an active election each year. Once you enroll, you cannot change your election until the next Open Enrollment period or unless you experience a Qualifying Life Event.

Dependent Care FSA (DCFSA)

All full-time employees are eligible to enroll in a DCFSA, even if you do not enroll in a medical plan. The DCFSA allows you to set aside a portion of your salary, before taxes and up to IRS limits, to reimburse yourself for eligible dependent day care expenses.

For the DCFSA, eligible dependents include:

• Your children under the age of 13
• A spouse who is physically or mentally unable to care for himself/herself
• Any adult you can claim as a dependent on your tax return who is physically or mentally unable to care for himself/herself

Contributions are made through pre-tax payroll deductions over the course of the year and accrue with each pay period, which means that you can only get reimbursed up to the amount of the contributions you have made.

You may not use your DCFSA to pay for health care or dental expenses. DCFSA dollars can be used for:

• Licensed nursery
• Qualified child care centers
• Adult day care facilities
• After-school programs
• Summer camps for dependent children under age 13
• Preschool tuition

For a list of eligible dependent care expenses, visit irs.gov.

Important to note:

• You must be at work, at school or looking for work during the time your eligible dependent (under age 13) receives care.
• You can contribute up to annual IRS limits ($7,500 or $3,750 if you are married and filing separately).
• DCFSA funds cannot be used to pay for health care expenses. You must be enrolled in the Health Care FSA (HCFSA) to cover health care expenses.

You may also be eligible to participate in a Health Care FSA to help pay for eligible health care expenses. Learn more.