Dependent Day Care FSA
The Dependent Day Care FSA allows you to pay for eligible dependent care expenses. You decide how much money to put aside each year, up to a maximum of $5,000 per year. This maximum is a combined limit for both you and your spouse.
Your total contribution is deducted in equal amounts from your pay before taxes and deposited into your FSA. You must have an available balance to cover any claims that are submitted.
Dependent Day Care FSAs are subject to IRS regulations that limit the amount that highly compensated employees (HCEs) may contribute. You will be notified in early each calendar year if you are an HCE affected by this IRS limitation.