Dependent Care FSA

Why enroll in a Kazdon Dependent Care FSA?

Save Money While Taking Care of Your Loved Ones So You Can Work

What is a Dependent Care FSA, how does it work?

• Savings with Your Dependent Care FSA

  A Kazdon Dependent Care Flexible Spending Account (DCFSA) is a pre-tax benefit account used to pay for dependent care services, such as preschool, summer day camp, before or after school programs, and child or elder daycare. A Kazdon Dependent Care FSA is a smart, simple way to save money while taking care of your loved ones so that you can continue to work.

  Your Estimated Tax Savings

  Without DEPENDENT CARE FSA

  Gross Annual Pay (Estimate) $60,000

  Estimated Tax Rate (30%) -$18,000

  Net Annual Pay =$42,000

  Annual Dependent Care Expenses -$5,000

  Final Take-Home Pay =$37,000

  All figures in this table are estimates and based on an annual salary of $60,000 and maximum contribution limits to the benefit account. Your salary, tax rate, healthcare expenses, and tax savings may be different.

  With DEPENDENT CARE FSA

  Gross Annual Pay (Estimate) $60,000

  Max. Annual Dependent Care FSA Contribution -$5,000

  Adjusted Gross Pay =$55,000

  Estimated Tax Rate (30%) -$16,500

  Final Take-Home Pay =$38,500

  Take Home This Much More ! $1,500

• Contributing to Your Dependent Care FSA

  The IRS sets the annual contribution limits for Dependent Care FSAs. You can contribute to up to a maximum of:

  - $2,500 per year if you are married and file a separate tax return*

  - $5,000 per year if you are married and file a joint tax return or if you file as single or head of household**

  Your maximum contribution may not exceed these earned income limitations:

  If you are single, the earned income limitation is your salary, excluding contributions to your Dependent Care FSA

  If you are married, the earned income limitation is the lesser of your salary, excluding contributions to your Dependent Care FSA, or your spouse’s salary

  A different limit may apply to you according to your employer’s plan.

  *Annual contribution limit for 2016.

  **If you and your spouse are both eligible to contribute to a Dependent Care FSA through your respective employers, you and your spouse may not each claim $5,000. Please note you may not “double-dip” expenses (e.g., expenses reimbursed under your Dependent Care FSA may not be reimbursed under your spouse’s Dependent Care FSA and vice versa.)

• Enrolling in Your Dependent Care FSA

  You enroll in or renew your election in your Dependent Care FSA through your employer during your Open Enrollment period each year. Your human resources department or benefits administrator can tell you when employees in your organization can enroll in a Dependent Care FSA and help you get started.

• Estimating Contributions to Your Dependent Care FSA

  A Dependent Care FSA is an annual account. As a rule, the money you contribute to your Healthcare FSA must be used within the plan year.

  That’s why it’s important to estimate how much you spend on eligible dependent care expenses each year before you decide how much to contribute to your Dependent Care FSA. Any money left unspent in your Dependent Care FSA at plan year end is forfeited to your employer, unless your employer’s plan offers a grace period of up to 2½ months at the end of your plan year to spend down money left in your account.

  Please read about circumstances that allow you to change your election amount during the plan year.

• Automatic Contributions Make Saving Simple

  Kazdon makes saving simple. You decide how much to contribute to your Dependent Care FSA, and funds are withdrawn automatically from each paycheck for deposit into your account before taxes are deducted. As soon as your account is funded, you can use your balance to pay for many eligible dependent care expenses. Please note, your account “must” be funded before any funds can be release to you.

• Managing Your Dependent Care FSA Couldn’t Be Easier

  Kazdon makes it easy to manage your Dependent Care FSA. Log into the Kazdon secure web portal to manage all aspects of your Kazdon account:

  - Check account balances
  - Submit claims and view claims status
  - Look up eligible expenses
  - Upload receipts to verify card transactions

  The Kazdon mobile app puts the power of the Kazdon web portal in the palm of your hand. Download this handy app to your mobile device, log in to your account, and check balances, submit claims, view transactions, snap photos of receipts, get account alerts by text or email—all on the go! You can even have your dependent care provider sign receipts using your mobile device.