What is a Dependent Care FSA, Anyway?
According toHealthcare.gov, a flexible spending account is a tax-free way to save money for healthcare costs.
FSAs are useful if you expect to incur a lot of health-related out-of-pocket costs.
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A Dependent Care FSA is similar in that you pay into it pre-tax.
A Dependent Care FSA covers the costs for either a licensed day care center or a private individual.
However, there are exceptions.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
Your claims might also be checked before you get reimbursed to confirm your expenses are legitimate.
Sweetham listed some of the most common expenses covered by Dependent Care FSA.
I asked Sweetham to elaborate.
Did you know?
Only certain individuals can opt for a Dependent Care FSA.
Sweetham explained a couple to me.
This means more work for you but is ultimately worth the inconvenience.
Many administrators provide helpful ways for employees to meet these substantiation requirements, he continued.
If youre not sure how to find these resources, ask your employers benefits department for assistance.
Rollovers arent allowed with a Dependent Care FSA, Sweetham explained.
This way youll likely use all the funds for dependent care expenses and not leave money on the table.
A Dependent Care FSA can help you save money on these expenses.
Check with your employer to see if this is something thats available to you.
It sounds appealing right?
Check it out here!
