Administered by ASI Flex, a Dependent Care Flexible Spending Account (DCFSA) allows you to save between 25% to 40% on the cost of child care or day care for children 13 and under, and for homecare for an older or incapable dependent while you are at work or school.

 

IRS contributionContributionIn reference to Flexible Spending Accounts and Health Savings Accounts, it’s the amount of money that you elect to be deducted from your paycheck to be deposited into your FSA or HSA account. limit: $5,000 per household for the 2020-2021 plan year and the 2021-2022 plan year. 

Plan Year (July 1, 2021 - June 30, 2022)

 

 


Flexible Spending Accounts run on the CU plan year, beginning July 1 and ending June 30.

 

DCFSA Basics

 

DCFSA Contributions

  • Your pretax contributions can be a minimum of $10 per month up to an annual maximum of $5,000 per plan year (July 1 to June 30) per household. The money is deducted from your pay pretax.
  • The amount you elect will be divided by the number of remaining pay periods in the plan year.  Your final contribution will be June 30. 
  • Your election is fixed for the taxonomy="ES Benefits Glossary" term="Plan Year"Plan Year[/glossry] however, changes are permitted if you experience aqualifying life change. 
  • For tax purposes, you are responsible ensuring that your total calendar-year contributions do not exceed $5,000 per Household.  For example, if you are hired by CU in the middle of our plan year and have contributed to a DCFSADCFSA (Dependent Care Flexible Spending Account)Used to pay for childcare expenses for children under the age of 13 or qualifying adults, who cannot care for themselves and meet IRS guidelines. with your prior employer, you must keep track of the total contribution amount.

 

Spending DCFSA Funds

 

Use it or Lose it Accounts

Failure to incur the expense and claim the reimbursement by the deadline will result in the forfeiting of your funds.

  • Plan year 2021-2022: You must incur expenses from July 1, 2021 to Sept. 15, 2022 and claim the money by Nov. 15, 2022.
  • Any funds that remain in the account beyond the above deadlines will be forfeited.

 

Effect on Social Security

Cafeteria planCafeteria PlanA plan that meets the requirements of IRS Code Section 125 and offers participating employees certain non-taxable benefits, such as the Premium Only Plan and flexible spending accounts dollars are deducted from your pay pretax, meaning before federal, state, Social Security and Medicare taxes are paid. Participating in cafeteria plansCafeteria PlanA plan that meets the requirements of IRS Code Section 125 and offers participating employees certain non-taxable benefits, such as the Premium Only Plan and flexible spending accounts reduces the salary on which annual contributions to Social Security are calculated, which may result in a reduction of the Social Security benefits received at retirement.

 

Review the FSA plan document.