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Dependent Care FSA

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Dependent Care FSA is not used for reimbursement of medical expenses. The Dependent Care FSA is to reimburse for work related dependent day-care expenses.

The Dependent Care FSA enables the employee to pay for out-of-pocket, work-related dependent day-care expense with pre-tax dollars. If the employee is married, the employee may use the account if the employee and their spouse both work or, in some situations, if the employee's spouse goes to school full-time. Single employees may also use the account. 

Visit irs.gov or Allegiance for additional information. 

Annual maximum contribution per household $5,000 or $2,500 if married but filing taxes separately. Can be used for:

  • Child care (age 12 and under)
  • Disabled dependent care
  • Funds available only as contributed 

Other restrictions:

  • $120/year minimum contribution
  • $2.26/month fee for one or both types of FSA
  • $1/month fee for debit card

Because it is possible the employee may forfeit amounts to the Plan if the employee does not fully use the contributions that have been made, it is important the employee decide how much to place in their Dependent Care FSA before the Plan Year begins. The employee must be as certain as possible that the amount the employee contributes to their Dependent Care FSA will be used entirely. 

During the course of the Plan Year, the employee may submit requests for reimbursement of expenses the employee has incurred. Expenses are considered "incurred" when the service is performed not necessarily when it is paid. The employee may only be reimbursed from the Dependent Care FSA Account to the extent that there are sufficient funds in the FSA to cover the expense.  

A terminated employee has 120 days after the end of the Plan Year to submit claims for dependent care expenses.

See the Wrap Plan Document for more details about flexible spending accounts.

See the dependent care flex calculator on the Allegiance website https://www.askallegiance.com/Resources/DependentTaxCalculator  for assistance in determining your appropriate contribution amount. 

Administered by Allegiance Benefit Plan Management 
(866) 339-4310 
Fax (406) 523-3149 or 
(877) 424-3539

https://www.askallegiance.com/