Dependent Care Flexible Spending Account (FSA) overview
A Dependent Care FSA allows you to set aside pre-tax dollars for eligible dependent care expenses, reducing your taxable income.
Contribution
These are the current IRS limits. Be sure to check IRS guidelines or company plan documents for updates.
- $5,000 per household for married couples filing jointly or single parents.
- $2,500 for individuals in married couples filing separately.
While employers can also contribute, they aren’t required to do so. Funds are available as contributions are made throughout the year.
Coverage
Eligible expenses typically include:
- Childcare: Daycare, preschool, babysitting for children under 13
- Programs: After-school programs, day camps (not overnight camps)
- Dependent care: For spouses or parents needing care, so that you can work
Non-eligible expenses include:
- Overnight camps
- Care for a child over 13
- Care that isn’t related to work or job-seeking
Check your plan in the Level App for eligible expenses.
Eligibility
You must be an active employee with qualifying dependents and incur expenses while working or job-seeking. Check the Level app or contact HR for details.
Paying for care
- Use the Level Visa® Card or a personal payment method to pay a qualified provider. Your Level Card use may not be supported for all Dependent Care FSA plans.
- Itemized receipts are required for Level Card transactions.
- Additional information may be requested, such as dependent name and age, dates of service, and provider information.
- If you use a personal payment method, make sure to submit a claim in the Level app.
Prorated claims
For claims that exceed your available balance, Level will reimburse you as your balance accrues.
Grace period
Some FSAs offer a 2.5-month grace period (through March 15th) to use remaining funds after the year ends. View your plan documents in the Level App to learn more.
Termination
When you leave the company, remaining funds are typically limited to the grace period or used for eligible expenses incurred up to termination. Check your plan’s termination policy for details.
For more details, check your Level App.