Dependent Care Flexible Spending Account (FSA)

A flexible spending account (FSA) designed to provide tax-exempt funds to employees for childcare or dependent expenses. Dependent care FSA contributions are typically exempt from federal income tax, FICA and state income taxes (in most states), which can save taxpayers a significant amount.

A key to remember is that the maximum amount allowed is $5,000. So, if you contribute the maximum into a depedent care FSA and your tax rate is 30%, you get savings of $1,500 by using the FSA account. A list of eligible expenses can be found at the FSA website.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Flexible Spending Account - FSA — A type of savings account available in the United States that provides the account holder with specific tax advantages. Set up by an employer for an employee, the account allows employees to contribute a portion of their regular earnings to pay… …   Investment dictionary

  • Flexible spending account — A flexible spending arrangement (FSA), or Flexible Spending Account, as they are commonly called, is one of a number of tax advantaged financial accounts that can be set up through a cafeteria plan of an employer in the United States. An FSA… …   Wikipedia

  • FSA debit card — An FSA Debit Card is a special type of debit card issued in the United States to access tax favored spending accounts such as flexible spending accounts (FSA) and health reimbursement accounts (HRA), and sometimes health savings accounts (HSA) as …   Wikipedia

  • Medicaid — Not to be confused with Medicare. Centers for Medicare and Medicaid Services (Medicaid administrator) logo Medicaid is the United States health program for certain people and families with low incomes and resources. It is a means tested program… …   Wikipedia

  • SHPS — Infobox Company company name = SHPS company company type = Health Care Wrap Around Services foundation = 1997 company slogan = key people = Rishabh Mehrotra (President and CEO) John W. McCarty (EVP and CFO) Jeff Rosenblum (EVP, Sales and Client… …   Wikipedia

  • Debit card — Personal finance Credit and debt Pawnbroker Student loan Employment contract Salary Wage Empl …   Wikipedia

  • Acronyms in healthcare — v · d · …   Wikipedia

  • United Kingdom — a kingdom in NW Europe, consisting of Great Britain and Northern Ireland: formerly comprising Great Britain and Ireland 1801 1922. 58,610,182; 94,242 sq. mi. (244,100 sq. km). Cap.: London. Abbr.: U.K. Official name, United Kingdom of Great… …   Universalium

  • japan — japanner, n. /jeuh pan /, n., adj., v., japanned, japanning. n. 1. any of various hard, durable, black varnishes, originally from Japan, for coating wood, metal, or other surfaces. 2. work varnished and figured in the Japanese manner. 3. Japans,… …   Universalium

  • Japan — /jeuh pan /, n. 1. a constitutional monarchy on a chain of islands off the E coast of Asia: main islands, Hokkaido, Honshu, Kyushu, and Shikoku. 125,716,637; 141,529 sq. mi. (366,560 sq. km). Cap.: Tokyo. Japanese, Nihon, Nippon. 2. Sea of, the… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.