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What is a dependent care FSA?

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Dependent care flexible spending account

Narrator:

Caring for your loved ones. Spending money wisely. That’s the heartbeat of the Optum Financial dependent care flexible spending account. Offered through your employer, a dependent care FSA, can help you put aside dollars income tax- free for the care of children under 14 or for dependent adults who can’t care for themselves.

Each household can contribute up to the IRS-allowed maximum. Your account is funded by payroll deductions before taxes. That money may help pay for a variety of services, including day care, nursery school, preschool, after-school or senior day care.

The dependent care FSA is a bit different than a health care FSA. With a health care FSA, the money you contribute to your account shows up in one lump sum on day 1 of the plan year. A dependent care FSA is typically funded every pay period, so you can only use what you’ve saved up.

Plan carefully, because the dependent care FSA is a “use it or lose it” account. Some plans have a grace period, but generally if you don’t use your FSA dollars in a given year you’ll lose the remaining cash.

And all year long, we’ll help you keep track of your money at optumfinancial.com or on the Optum Financial mobile app. You can get a quick view of your account, check your balances and even file a claim.

We’ll also help you keep track of any other Optum Financial account that you can easily pair with the dependent care FSA, be it a health savings account or a limited purpose FSA.

They all work together for you. Check your benefit information to see if you’re eligible.

The Optum Financial dependent care flexible spending account. Spending money wisely income tax-free for those who matter most!

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A dependent care FSA can help you put aside dollars, income tax- free, for the care of children under 13 or for dependent adults who can’t care for themselves. Your account is funded by payroll deductions before taxes. That money may help pay for a variety of services, including: day care, nursery school, preschool, after-school or senior day care. Watch this video to learn more.

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Investments are not FDIC insured, are not bank issued or guaranteed by Optum Financial or its subsidiaries, including Optum Bank, and are subject to risk including fluctuations in value and the possible loss of the principal amount invested.