What is Dependent Care FSA

Understanding the function of a Dependent Care FSA in the healthcare and insurance industry.

Female Speaker: A dependent care flexible spending account is an account that your employer sets up as a benefit to you. It allows you to set aside pre-tax payroll dollars to pay for eligible child or adult dependent care expenses that aren't covered or reimbursed by any other source. Here's a look at a covered expense under a dependent care FSA. Money spent for the care of a qualified person. Now a qualified person is someone who spends at least eight hours a day in your home and is one of the following. You're dependent, who is under the age of 13 and who you can claim as an exemption or a spouse or dependent who is physically or mentally incapable of taking care of themselves and who you claim as an exemption. There is a limit on how much you can contribute to this account. Male Speaker: This is summary information. Check with your HR department for questions specific to your plan.