A Dependent Care Flexible Spending Account (Dependent Care FSA) is an employer-sponsored plan that allows you to deduct dollars from your paycheck and deposit them into a special account that’s exempt from federal income taxes, Social Security (FICA) taxes and, in most cases, state income taxes. The money in a Dependent Care FSA can be used for eligible dependent care expenses that are incurred while you are participating in the plan.
What are the benefits of a Dependent Care FSA?
- Enjoy potential tax savings with pre-tax deductible contributions and tax-free reimbursements for qualified expenses.
- Quickly and easily access funds to pay for qualified housing, food and childcare expenses.
A Dependent Care FSA allows reimbursement of dependent care expenses, such as daycare, in-home care and even summer camp, that are incurred by eligible dependents.
Once you determine how much you want to contribute, the amount will be deducted from your paycheck in equal installments throughout the year.
Be sure to estimate your healthcare expenses carefully as money left unspent in your Dependent Care FSA at the end of the year will be forfeited.
Flexible Spending Accounts (FSAs) are accounts offered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC) and administered by WEX Health, Inc.
The amount you save in taxes will vary depending on the amount you set aside in the account, your annual earnings, whether or not you pay Social Security taxes, the number of exemptions and deductions you claim on your tax return, your tax bracket and your state and local tax regulations. Check with your tax advisor for information on how your participation will affect your tax savings.
This page highlights some of the benefits of a Dependent Care FSA. If there is a discrepancy between this material and your plan documents, the plan documents will govern. WEX Health, Inc. reserves the right to amend or modify the services at any time.