Flexible Spending Account Watch This FSA Video to Learn Flexible Spending Accounts (FSA) are set up to pay for More many of out-of-pocket medical expenses with tax-free dollars. The FSA account holder sets aside a pre-tax dollar amount for the year used to pay for medical expenses. Unused FSA funds can expire at the end of the year. Dependent Care Account (DCA) A DCA is a tax-free spending account for dependent care expenses such as daycare, preschool, or day camps for any dependent under the age of 13. You may also use funds for elder care for older family members legally under your care. Learn More About Your DCA