Dependent Care Flexible Spending Account

A Dependent Care Flexible Spending Account (FSA) is a pre-tax benefit that allows employees to set aside funds to pay for eligible dependent care expenses, such as daycare or preschool for children or care for elderly dependents. Contributions are deducted automatically from your paycheck before taxes, reducing your taxable income and potentially lowering your overall tax burden. The funds can then be used throughout the plan year for qualified expenses, providing a convenient way to save on dependent care costs while benefiting from tax advantages.