FSA Administration Company, Clarity Benefit Solution, Discusses Seven Advantages of Dependent Care FSAs
NEW YORK, May 21, 2018 /PRNewswire-iReach/ -- FSA administration company, Clarity Benefit Solutions, discusses seven advantages of Dependent Care FSAs.
Dependent Care Flexible Spending Accounts (FSAs) are plans that allow employees to use pretax dollars to pay for a multitude of qualified expenses associated with caring for a disabled parent, spouse, child, or any other dependent who is unable to care for themselves. The IRS has set a limit for the total amount of money employees can contribute to Dependent Care FSAs as $5,000 per year for married couples who file jointly as well as unmarried couples and those who are single. Married people who file separately have a $2,500 limit.
Here are seven benefits to establishing a Dependent Care FSA.
- Pretax monies can be used to pay for medical expenses, which results in employees having lower taxable incomes.
- Any licensed day care, nursery school, private preschool, or adult care facility can be paid for with these accounts
- Dependent Care FSA funds can be put toward placement fees for a dependent care provider—such as a nanny for the children.
- The monies from Dependent Care FSAs can also pay for before- and after-school care programs for children or dependents under the age of 13.
- Dependent Care FSA funds can reimburse a non-dependent relative age 19 or older for providing care to the employee's child or dependent. The monies can also be used to pay for any transportation that a caregiver provides.
- Monies from these accounts can be put toward children or dependents 13 years old or younger attending public or private summer day camp.
- A housekeeper that is also caring for a child or dependent can be compensated with funds from a Dependent Care FSA.
Dependent Care FSAs cannot be used in the following situations: education tuition, housekeeping, babysitting by minor-aged children or children considered dependents, enrichment programs, overnight camps, music or sports lessons, meals, or nursing/long-term care for parents not living with the employee.
About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
Media Contact: Calvin Clark, Clarity Benefit Solutions, 7324288282, [email protected]
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SOURCE Clarity Benefit Solutions
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