Dependent Care Flexible Spending Account
A Dependent Care Flexible Spending Account (DCFSA) is a pre-tax savings account that can be used for eligible expenses related to daycare for your child, disabled spouse, elderly parent, or other dependents that may be physically or mentally incapable of self-care so that you can work.
If you are married, your spouse must be working, looking for work or be a full-time student. If you have a stay-at-home spouse, you should not enroll in the Dependent Care Flexible Spending Account. The IRS allows no more than $5,000 per household ($2,500 if you are married and file a separate tax return) to be set aside in the Dependent Care Flexible Spending Account in a calendar year.
If you are divorced or single, you must have physical custody of your child for over half of the year, in order to be eligible for reimbursements through a DCFSA. If custody is exactly equal, then neither parent can use the childcare expenses. The parent who has more than 50% custody is eligible for the dependent care regardless of who claims the tax exemption.
- Eligible expenses include daycare, baby-sitting, and general-purpose day camps.
- Ineligible expenses include overnight camps, care provided by a dependent, your spouse or your child under the age of 19, and care provided while you are not at work.
- Expenses may only be claimed for dependents who are under the age of 13 or for older dependents who live with you at least 8 hours each day and are incapable of self-care.
- This account cannot be used for health care expenses for your dependents.
When Can I Make Claims?
You can use your DCFSA for expenses incurred after the account begins, through the end of the calendar year.
All claims must be submitted to ASIFlex by March 31st for the previous plan year.
Will My Unused Funds Rollover?
No - DCFSAs do NOT include a rollover provision. This is a "Use It or Lose It" account, which means you have until December 31st to incur any services.
- Any unused funds will be forfeited.
How Much You Can Contribute
Annually: $120 to $5,000 (this is a household maximum)
Per Pay Period: Minimum of $5
Excess Flex Credits: Employees who are waiving medical insurance are eligible to direct up to $5,000 of excess flex credits into a DCFSA. This plan must be actively elected each year during Open Enrollment and will not automatically roll over.
Participation in a DCFSA during a Leave of Absence
Your contributions will automatically continue during a Leave of Absence period, as long as you continue to receive a paycheck. Any missed contributions during an unpaid Leave of Absence will be collected upon your return from leave. Refer to the Leave of Absence page for addition information.
- Although you will continue to contribute to your DCFSA during a Leave of Absences, dependent care expenses that you incur during the leave will not be eligible for reimbursement due to IRS rules (because you are not at work).
- If you need to stop your
DCFSA due to a Leave of Absence, the change in your daycare needs
would be a Qualifying Life Event to make changes moving
Flexible Spending Account Description
The County’s Cafeteria Plan Document and Summary provides a
detailed description of the FSA Plan, and is intended to provide you
with a general understanding of the plan.
ASIFlex offers customer support as well as easy-to-use online tools to help you make the most of your FSA. Participants can use the ASIFlex website to access interactive claims, online calculators and view account balances and reimbursement histories.