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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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What is a health care FSA?

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Flexible spending accounts (FSAs)

By opening an FSA, you are getting smart savings for your health and family’s care.

Resource library

Search our resource library for additional resources — from videos to financial wellness articles — that can help you learn more about how to save, pay and invest your health care dollars now and into retirement.

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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. The Schwab Health Savings Brokerage Account is offered to certain account holders through Charles Schwab & Co., Inc., Member FINRA/SIPC. For details and disclosures, visit schwab.com. Brokerage services are offered to certain accountholders through TD Ameritrade, Inc., Member FDIC/SIPC and a subsidiary of The Charles Schwab Corporation. For details and disclosures, visit tdameritrade.com.

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

Health savings accounts (HSAs) are individual accounts offered through Optum Bank®, Member FDIC, or ConnectYourCare, LLC, an IRS-Designated Non-Bank Custodian of HSAs, each a subsidiary of Optum Financial, Inc. Neither Optum Financial, Inc. nor ConnectYourCare, LLC is a bank or an FDIC insured institution. 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 (FSAs), dependent care assistance programs (DCAPs), health reimbursement arrangements (HRAs), Commuter and Parking Benefits, Tuition Assistance Plans, Adoption Assistance Plans, Surrogacy Assistance Plans, Wellness Benefits, and Lifestyle Accounts (collectively, “Employer-Sponsored Plans”) 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. Employer-Sponsored Plans are not individually owned and amounts available under the Employer-Sponsored Plan are not FDIC insured. This communication is not intended as legal or tax advice. Federal and state laws and regulations are subject to change. 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.

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The promotional code OPTFSA7, OPTHSA5 and OPTHRA7 cannot be applied to previously placed orders, and cannot be combined with other promotional codes. Additionally, the code cannot be used for prescription drugs or virtual care visits. Promotional codes are not transferable or redeemable for cash or credit. To apply a promotional code you must enter it prior to completing the order.

Free and expedited shipping offers do not apply to shipping outside of the contiguous United States. Additional shipping restrictions may apply.

The Optum Store is an affiliate of the UnitedHealth Group family of companies.

Your employer sponsored plan may exclude reimbursement for certain categories of items. Check your plan document and summary plan description or contact your benefits department for specific coverage details. 

© 2022 Optum, Inc. All rights reserved

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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.