Extra help that’s easier to afford
Work better knowing your dependents are being cared for while you’re at work or in school.
Dependent Care Flexible Spending Account Overview
Extra help that’s easier to afford
Lower the net cost of your dependent care expenses by using Pre-Tax dollars to pay for them. That is like having a 25% coupon for every dollar you spend on dependent care.
To manage our Flexible Spending Accounts we use Health Equity. A Health Equity Dependent Care Flexible Spending Account (FSA) is a pre-tax benefit account used to pay for dependent care services, such as preschool, summer day camp, before or after school programs, and child or elder daycare.
- Save an average of 30% on preschool, summer day camp, before/after school programs, child or elder daycare, and more on services incurred while you are enrolled in the plan
- Reduce your overall tax burden—funds are withdrawn from your paycheck for deposit into your Dependent Care FSA before taxes are deducted
- Take advantage of several convenient, no-hassle payment and reimbursement options
How it works:
Simply decide how much to contribute to your account each year, and funds are withdrawn from each paycheck for deposit into your account before taxes are deducted. As soon as your account is funded, you can use your balance to pay for many eligible dependent care expenses.
How you manage it:
With a variety of payment and reimbursement options, your Health Equity Dependent Care FSA is easy to use. Arrange for convenient direct payments to your dependent care provider or be reimbursed for payments you make. You can even have your dependent care provider sign receipts using your mobile device.
Manage your account via a secure website on any computer or mobile device connected to the Internet or via the Health Equity EZ Receipts® app.
In 2023, employees who earn up to $135,000 can contribute up to a maximum of $5,000 to your Health Equity Dependent Care FSA. Those who make over $135,000 can contribute up to $2,700 annually.
In 2024, employees will be capped at $2,500 annually in pre-tax deductions towards their Dependent Care FSA.
Simply estimate your annual dependent care expenses and make your contributions carefully. Any money left unspent in your Dependent Care FSA at plan year end is forfeited, so plan wisely.
Learn more at: https://www.healthequity.com/
2023 Accounts will have until April 30, 2024 to submit for outstanding reimbursement. 2024 Accounts will have until April 30, 2025 to submit for outstanding reimbursement.
Want to confirm what would qualify as an eligible expense? Have a review of IRS publication 503 here.