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FLEXIBLE SPENDING ACCOUNTS

FLEXIBLE SPENDING ACCOUNTS

Dependent Care 

Discovery Benefits

Dependent Care Flexible Spending Accounts (FSAs) are designed to save you money on your taxes. They work in a similar way to a savings account. Each pay period, funds are deducted from your pay on a pretax basis and are deposited to your Dependent Care FSA. You then use your funds to pay for eligible dependent care expenses.

Account Type Eligible Expenses Annual Contribution Limits Benefit
Dependent Care FSA Dependent care expenses (such as day care, after school programs or elder care programs) so you and your spouse can work or attend school full-time Maximum contribution is $5,000 per year ($2,500 if married and filing separate tax returns) Reduces your taxable income