Dependent Care
Dependent Care FSA allows you to pay for eligible child an adult care expenses with pre-tax dollars. This includes preschool, nursery school, day care, before and after school care, summer day camp, etc. The main benefit of a DCFSA is that the money in the account is pre-tax, which can reduce the amount of income subject to taxes.
Plan Features
Everything You’ll Need to Know
Greenlight Networks offers full-time employees the option to enroll in a Dependent Care FSA. T
Here are some things to know about DCFSAs:
Eligible expenses – DCFSAs can be used to pay for qualified day care expenses for children under 13 and adult dependents who are unable to care for themselves. Eligible expenses also include application fee for day care, lessons like dance, music, or sports, and overnight camps.
Annual Contribution Limit – The maximum annual contribution limit for a DCFSA is 5,000 per household, or $2,500 if married and filing separately.
Use-it-or-lose-it rule – The IRS requires that all money in a DCFSA be used to reimburse qualified expenses during the plan year. Any funds remaining after the plan year ends are forfeited, with some exceptions.
Different from a Health Care FSA – A Health Care FSA is for eligible health care expense for you and your dependents, while a DCFSA is for dependent care expenses.