Page 14 - Fontbonne 2020 Benefits
P. 14
Healthcare vs.
Dependent Care Dependent Care FSA
Spending Accounts A dependent care FSA provides you with the ability to save money on
While healthcare and dependent
care spending accounts function a pre-tax basis for daycare expenses for your child, disabled parent, or
similarly, they are diferent spouse. Generally, expenses will qualify for reimbursement if they are the
when it comes to how you can result of care for the following circumstances.
use your account balance. For
health accounts, you are able Your children, under the age of 13, for whom you are entitled to a
to begin using your entire plan
year balance as soon as the plan personal exemption on your federal income tax return.
becomes efective. Your spouse or other dependents, including parents, who are
Dependent care spending physically or mentally incapable of self-care and rely on you for
accounts are diferent in which inancial support.
reimbursements are based upon
the amount of your balance. Eligible expenses include payments to daycare centers, preschool
If you submit a claim for an costs (up to, but not including, irst grade), after school care, and
amount which is greater than elderly care. The cost of babysitting in a home is permitted—as long
your balance, then you will only
be reimbursed at the point in as the person providing the care is not one of your own children
time for the amount of your under age 19 or anyone else you claim as a tax exemption on your
account balance. The remainder federal income tax return. You must provide the Social Security or
of the balance will be reimbursed
to you as additional funds are tax ID number of the care provider to be reimbursed from your
deposited into your account. dependent care FSA.
The maximum amount you may contribute to the dependent
care FSA is $5,000 (or $2,500 if married and iling separately) per
calendar year.
You are eligible to contribute to the dependent care FSA regardless
of your medical plan enrollment. HSA participants may also
participate in the dependent care FSA.
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Dependent Care Dependent Care FSA
Spending Accounts A dependent care FSA provides you with the ability to save money on
While healthcare and dependent
care spending accounts function a pre-tax basis for daycare expenses for your child, disabled parent, or
similarly, they are diferent spouse. Generally, expenses will qualify for reimbursement if they are the
when it comes to how you can result of care for the following circumstances.
use your account balance. For
health accounts, you are able Your children, under the age of 13, for whom you are entitled to a
to begin using your entire plan
year balance as soon as the plan personal exemption on your federal income tax return.
becomes efective. Your spouse or other dependents, including parents, who are
Dependent care spending physically or mentally incapable of self-care and rely on you for
accounts are diferent in which inancial support.
reimbursements are based upon
the amount of your balance. Eligible expenses include payments to daycare centers, preschool
If you submit a claim for an costs (up to, but not including, irst grade), after school care, and
amount which is greater than elderly care. The cost of babysitting in a home is permitted—as long
your balance, then you will only
be reimbursed at the point in as the person providing the care is not one of your own children
time for the amount of your under age 19 or anyone else you claim as a tax exemption on your
account balance. The remainder federal income tax return. You must provide the Social Security or
of the balance will be reimbursed
to you as additional funds are tax ID number of the care provider to be reimbursed from your
deposited into your account. dependent care FSA.
The maximum amount you may contribute to the dependent
care FSA is $5,000 (or $2,500 if married and iling separately) per
calendar year.
You are eligible to contribute to the dependent care FSA regardless
of your medical plan enrollment. HSA participants may also
participate in the dependent care FSA.
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