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What is a dependent care FSA?

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Dependent care flexible spending account

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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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Health savings accounts (HSAs) are offered or administered by Optum Bank®, Member FDIC, or ConnectYourCare, LLC, each a subsidiary of Optum Financial. HSAs are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Fees may reduce earnings on account. Flexible spending accounts/arrangements (FSAs), health reimbursement arrangements (HRAs), Commuter and Parking Benefits, Adoption Reimbursement Plans, Tuitions Reimbursement Plans, Surrogacy Reimbursement Plans, Lifestyle Plans, COBRA Benefits, and all other account types are administered on behalf of your plan sponsor by Optum Financial, Inc. or ConnectYourCare, LLC (collectively, “Optum Financial”) and are subject to eligibility and restrictions. Please contact a legal or tax professional for advice on eligibility, tax treatment, and restrictions. Please contact your plan administrator with questions about enrollment or plan restrictions. Federal and state laws and regulations and the design of your plan are subject to change.

Self-directed mutual fund investment options are made available through the services of an independent investment advisor, or your plan sponsor. Discretionary advisory services are provided by Betterment LLC, an SEC-registered investment adviser, with associated brokerage transactions provided by Betterment Securities, member FINRA/SIPC. For details and disclosures visit betterment.com. Certain brokerage services are offered through TD Ameritrade, Inc., member FDIC/SIPC and a subsidiary of The Charles Schwab Corporation.  For details and disclosures, visit  www.tdameritrade.com. The Schwab Health Savings Brokerage Account is offered through Charles Schwab & Co., Inc., member FINRA/SIPC. For details and disclosures, visit schwab.com.

Orders are accepted to effect transactions in securities only as an accommodation to HSA owners. Optum Financial and its subsidiaries are not broker-dealers or registered investment advisors and do not provide investment advice or research concerning securities, make recommendations concerning securities, or otherwise solicit securities transactions.

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