Consider for a moment the savings...

20% to 40% less out of your pocket for dependent care expenses you have to pay for anyway!

This is the value of a Flexible Spending Account.

A Dependent Care Flexible Spending Account (FSA) is designed to reimburse for expenses incurred to care for your eligible dependents. Examples of eligible expenses are daycare, after school care and elder care.

Here is how an FSA works.  You decide to have an amount of your choice (goal amount) to be deducted incrementally from your paycheck, up to the maximum allowed by the IRS. These contributions to your personal flexible spending account are made before any taxes (payroll or income) are taken from your earnings. You then file claims against your FSA for reimbursement of eligible expenses you have incurred during the plan year.  It is the opportunity to pay for eligible dependent care expenses with earnings that have not been taxed that provides the great value of an FSA. You may be reimbursed for eligible expenses up to the annual goal you have elected to contribute. 

The Internal Revenue Service has defined what expenses are eligible for reimbursement and it is always best to verify the eligibility of an item or service prior to incurring the expense.

After you have incurred an eligible expense, you may be reimbursed up to your contribution balance at the time of the reimbursement request. Claims submitted for expenses that exceed your current contribution balance will be partially paid and the unpaid balance will automatically pay as additional contributions are applied to your account. You must also remember to use all of your contributions by your employer’s designated plan end date as no contribution amount may be carried over to subsequent plan years. You will need to refer to your employer’s Summary Plan Description (SPD) document to determine your employer’s designated plan end date.

Open enrollment for the Dependent Care FSA occurs annually. You must elect to participate in an FSA each year before the plan year begins.  New employees may enroll in an FSA during their designated benefits election period.  Changes to your FSA elections can only be made if you have experienced a qualified life status change.