Page 18 - Guide
P. 18
2017 New Hire Guide
Healthcare vs.
Dependent Care
Spending Accounts Participants in the HSA plan cannot participate in the healthcare
While healthcare and dependent FSA except on a “limited FSA” basis, which allows for immediate
care spending accounts do access to funds for dental and vision expenses.
function quite similarly, they are
very different when it comes to Dependent Care FSA
how you can use your account A dependent care FSA provides you with the ability to save money on
balance. For health accounts, you
are able to begin using your entire a pre-tax basis for daycare expenses for your child, disabled parent, or
plan year balance as soon as the spouse. Generally, expenses will qualify for reimbursement if they are the
plan becomes effective. result of care for the following circumstances.
Dependent care spending Your children, under the age of 13, for whom you are entitled to a
accounts are different in which personal exemption on your federal income tax return
reimbursements are based upon
the amount of your balance. Your spouse or other dependents, including parents, who are
If you submit a claim for an physically or mentally incapable of self-care and rely on you for
amount which is greater than inancial support
your balance, then you will only
be reimbursed at the point in time Eligible expenses include payments to daycare centers, preschool
for the amount of your account costs (up to, but not including, irst grade), after school care, and
balance. The remainder of the elderly care. The cost of babysitting in a home is permitted—as long
balance will be reimbursed to you
as additional funds are deposited as the person providing the care is not one of your own children
into your account. under age 19 or anyone else you claim as a tax exemption on your
federal income tax return. You must provide the Social Security or
tax ID number of the care provider to be reimbursed from your
dependent care FSA.
You may deposit up to $5,000 (pre-tax) into your dependent care
FSA. Pre-tax contributions are withheld from each paycheck.
Unlike the healthcare account, money is only reimbursed up to the
total balance of the account.
HSA participants may also participate in the dependent care FSA.
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Healthcare vs.
Dependent Care
Spending Accounts Participants in the HSA plan cannot participate in the healthcare
While healthcare and dependent FSA except on a “limited FSA” basis, which allows for immediate
care spending accounts do access to funds for dental and vision expenses.
function quite similarly, they are
very different when it comes to Dependent Care FSA
how you can use your account A dependent care FSA provides you with the ability to save money on
balance. For health accounts, you
are able to begin using your entire a pre-tax basis for daycare expenses for your child, disabled parent, or
plan year balance as soon as the spouse. Generally, expenses will qualify for reimbursement if they are the
plan becomes effective. result of care for the following circumstances.
Dependent care spending Your children, under the age of 13, for whom you are entitled to a
accounts are different in which personal exemption on your federal income tax return
reimbursements are based upon
the amount of your balance. Your spouse or other dependents, including parents, who are
If you submit a claim for an physically or mentally incapable of self-care and rely on you for
amount which is greater than inancial support
your balance, then you will only
be reimbursed at the point in time Eligible expenses include payments to daycare centers, preschool
for the amount of your account costs (up to, but not including, irst grade), after school care, and
balance. The remainder of the elderly care. The cost of babysitting in a home is permitted—as long
balance will be reimbursed to you
as additional funds are deposited as the person providing the care is not one of your own children
into your account. under age 19 or anyone else you claim as a tax exemption on your
federal income tax return. You must provide the Social Security or
tax ID number of the care provider to be reimbursed from your
dependent care FSA.
You may deposit up to $5,000 (pre-tax) into your dependent care
FSA. Pre-tax contributions are withheld from each paycheck.
Unlike the healthcare account, money is only reimbursed up to the
total balance of the account.
HSA participants may also participate in the dependent care FSA.
18
