Dependent Care Flexible Spending Account (DCFSA)

Dependent Care Flexible Spending Account (DCFSA)

What is a Dependent Care Flexible Spending Account (DCFSA)?

A pre-tax spending account to pay for eligible childcare expenses for dependents under age 13 or eldercare expenses for a spouse or adult dependent incapable of self-care.

Dependent Care FSA funds are use it or lose it. Funds may be forfeited, outside of the allowed carryover noted below, if not used by the end of the plan year.

Note: This account is not a health care account and cannot be used to pay for healthcare expenses.

Main benefits of a Dependent Care Flexible Spending Account (DCFSA)

• Helps reduce your taxable income and increase your take home pay

• Allows you to set aside pre-tax dollars for before/after school care or summer day camps for dependent children under age 13, or for an adult tax dependent who is unable to care for themself

• Eligibility

  Who is eligible?

  Colleagues regularly scheduled to work 30+ hours per week and can be enrolled in any medical plan or waive medical coverage through CVS Health.

  Note: You must be working to be eligible for DCFSA. If you’re married, your spouse must either be working, looking for work, a full- time student or incapable of self-care.

• Account details

  Who owns the account?

  CVS Health

  Who can contribute to the account?

  Colleague

  Who can the account be used for?

  Children under 13 and spouse/dependent incapable of self care

• Contribution details

  What is the annual IRS contribution limit for the 2024 plan year?

  $260 up to $5,000 ($2,500 if married and filing separately) Per IRS rules, contributions may be limited for highly compensated colleagues.

  How much does CVS Health contribute?

  N/A

  When can I adjust my contribution?

  During annual enrollment or with a qualifying life event

  Can I carryover the account balance?

  No

• Spending details

  Do the funds expire?

  Yes

  When can I start using my funds?

  Your pro-rated payroll contributions are available when they are deposited into your account.

  Note: All funds are used for eligible expenses incurred during the benefit plan year.

  What expenses are eligible?

  Custodial care (i.e.: daycare, pre-school, in-home care, etc.) for a child or adult dependent.

  View the full list of eligible expenses on inspirafinancial.com

  Do I receive a debit card?

  No

  How do I access the funds?

  • Use online bill pay to pay your providers directly or;

  • Reimburse yourself for out-of-pocket expenses through the Inspira Financial mobile app or website via check, or ACH transfer funds directly to your bank account

• Tax details

  Do I need to submit documentation for an expense to Inspira Financial?

  Yes - An itemized receipt or claim form signed by your provider is required when you submit a claim.

  Are the distributions tax-free?

  Yes

  Are the earnings tax- free?

  N/A

• Savings and investments

  Does the account provide long-term savings?

  No

  Can I invest the funds in the account?

  No

  If I leave the company, can I take my account with me?

  No

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