Dependent Care Flexible Spending Account Overview

livelyme.com | 1.888.576.4837 | support@livelyme.com Tax-free savings for caregivers Dependent Care FSA A Dependent Care Flexible Spending Account (DCFSA) is an employer- sponsored account that allows employees to set aside pre-tax dollars for eligible expenses. Enrolling in a DCFSA means you can offset some of the high costs of dependent care services while also reducing your tax burdens. Many working parents and caregivers take advantage of these savings each year. If you are eligible to participate in your employer’s benefits program, you are eligible to enroll in the DCFSA offeredd { Enrollment and election only take place during the open enrollment period, unless you have a qualifying life event during the yeard { You can be simultaneously enrolled in a DCFSA and an HSA or another type of FSAd { You do not need to enroll in your employer’s health plan to enroll in a DCFSA. Qualifying individuals must be claimed as dependents on your federal tax return, such as� { A child under age 1� { A disabled spous� { An elderly parent These individuals generally need to have the same primary residence as you to qualify and other requirements may apply. Check IRS Publication 503 for complete and updated details. Who is eligible to enroll in a DCFSA? Who is an eligible dependent? Contribution limits in 2025* $5,000
 If you are filling single, or are married and filling jointly $2,500 
 If married but filing separately You cannot contribute more than your earned income for the plan year. If you and your spouse are each enrolled in a DCFSA, the maximum for your household is still $5,000, not $10,000. *Contribution limits may vary by employer.