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A Dependent Care Account (DCA) is a great way for employees to save on dependent care expenses. At the beginning of the plan year, employees choose how much they would like to set aside in a tax-free account. Employees can use this account to pay for eligible dependent care expenses.

A DCA is a tax-free benefit account offered by an employer, where the participant/employee sets aside money to pay for eligible dependent care expenses.

Who is eligible for a  DCA?

To be eligible for a DCA, a participant/employee must work for an employer that offers a DCA.

What’s the benefit of a DCA?

The participant/employee does not pay taxes on any money put into an DCA.

Is there a limit to DCA contributions?

Yes, the annual DCA contribution limit is $5000 for 2020.

What expenses are eligible to spend DCA funds on?

Eligible healthcare expenses are governed by IRS Publication 503.

What if I do not use all of my DCA funds during the plan year?

Any funds leftover in a DCA after the plan year is over must be forfeited.