DEPENDENT CARE SPENDING ACCOUNT
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Dependent CareHealthcare Spending AccountFlexible Spending Account
HealthEquity
Dependent CareHealthcare Spending AccountFlexible Spending Account

Working families often need help with child and elder-care expenses. A dependent care flexible spending account allows you to use pretax dollars to pay for your dependent-care expenses. HealthEquity administers the dependent care accounts. Please note that elections will still be made through Benefit Express with all other benefit elections. Some examples of the expenses covered by the dependent care spending account include:

  • Child daycare
  • Senior daycare
  • Before-and-after school programs
  • Sick childcare services while you're at work

Since it is a flexible spending account, you save taxes on the funds you set aside. However, like all FSAs, you must use the funds or you will lose them, so it's important to estimate your covered expenses carefully. You can contribute up to $5,000 in the dependent care spending account, however there are some additional restrictions dependent upon your marital status and tax filing. For more information see the chart below.

Special Note for Highly Compensated Employees:

Dependent care spending accounts are subject to annual non-discrimination testing. If our participation results do not satisfy the non-discrimination threshold, highly compensated employees (as defined by the IRS) may have their contributions reduced to a level that will allow for compliance.

Your Situation Your Maximum Annual Contribution to the Dependent Care Account
You and your spouse file a joint income tax return and your spouse also participates in a dependent day care flexible spending account. Your combined annual contributions cannot exceed the lesser of (i) $5,000, (ii) the earned income of your spouse for the year, or (iii) your earned income for the year.
You and your spouse file separate income tax returns. Your annual contributions to the dependent care account cannot exceed the lesser of (i) $2,500, (ii) your earned income, or (iii) the earned income of your spouse.