Dependent Care FSA Plan Overview

A Dependent Care Flexible Spending Account (FSA) is a pre-tax benefit account that reimburses employees for eligible dependent care expenses such as preschool, summer day camp, before- and after-school programs, and child or adult daycare. Contributions to a Dependent Care FSA are exempt from payroll taxes, which means employees pay less in taxes and take home more of their paycheck each year. It’s a smart, straightforward way to save money while ensuring your loved ones receive quality care, allowing you to focus on work.

 

For more information about how Dependent Care FSAs work, watch this quick video:

https://www.youtube.com/watch?v=6kXlieLZHeI

 

Warning

You cannot change your FSA contribution amount during the year unless you experience a qualifying life event. Additionally, any funds left unused at the end of the plan year will be forfeited, so it’s important to carefully estimate your eligible dependent care expenses before deciding how much to contribute.

 

Employees are responsible for ensuring their expenses qualify for reimbursement. For full details, please refer to the IRS guidelines on Dependent Care FSAs.

 

Important News for New Mexico Residents

Starting November 1, 2025, New Mexico will become the first state to offer no-cost universal childcare to all families, regardless of income, by removing income eligibility requirements and eliminating copayments. For more information about how families can access universal childcare benefits, visit https://www.nmececd.org/universal/.

 

For More Information, Please Review The Following Documents:

Dependent Care FSA Info Sheet

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