Participating in a dependent care FSA can save you money because deductions are made before federal, Social Security and, depending on where you live, state and local taxes are withheld from your paycheck.
You may contribute between $120 and $5,000 to your dependent care FSA annually to use for eligible day-care expenses for eligible dependents (children under age 13, adults who are physically or mentally incapable of self-care, etc.) that allow you or your spouse, if applicable, to work.
Your entire unused balance will roll over and be available for use the following year. Contributions cannot be transferred between the health care and dependent care FSAs.
Important: To participate in the dependent care FSA, you must actively enroll during annual enrollment each year.
Fidelity financial planning consultants can assist with everything from basic budgeting to complex financial situations. To speak with a Fidelity advisor, call 800-603-4015.
