What is a Dependent Care Flexible Spending Account (FSA)?
The Dependent Care Flexible Spending Account (FSA) is a tax-advantaged savings account that allows employees to set aside pre-tax earnings to pay for eligible dependent care expenses, such as childcare, adult daycare, or care for a disabled family member. The funds in the account can be used to cover costs while the employee is working, and contributions reduce the employee’s taxable income, providing potential tax savings.