DCFSA
Dependent Care Flexible Spending Account (with grace period) A DCFSA lets you use tax-free money to pay for eligible dependent care expenses. 1 A qualifying ‘dependent’ may be a child under age 13, a disabled spouse, or an older parent in eldercare.
Pre-tax payroll contributions
Fast, hassle-free payments and reimbursement
Common eligible dependent care expenses:
Enjoy an extra grace period at the end of the plan year to spend remaining account funds 2 $ 1,000 IRS Contribution Limit 4 $ 5,000 Annual tax saving potential 3
• Daycare • Nursery school
• Babysitter • Preschool • Summer day camp • Before/after school programs • Elder daycare
HealthEquity.com/ Learn/DCFSA See how much you can save
1 DCFSAs are never taxed at a federal income tax level when used appropriately for eligible dependent care expenses. Also, most states recognize DCFSA funds as tax deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules. | 2 See your plan documents for complete details. | 3 The example is for illustrative purposes only. Estimated savings are based on a maximum annual contribution and an assumed combined federal and state income tax bracket of 20%. Actual savings will depend on your contribution amount and taxable income and tax status. | 4 Contribution limit is accurate as of 11/09/2023. Each fall the IRS updates the DCFSA contribution limits. For the latest information, please visit: HealthEquity.com/ Learn | HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions.
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