Do you use your FSA for childcare?

[idoinjuly]

Can someone explain how it works?  We are planning to send both kids to preschool in the fall and I'm wondering if it would benefit us.  I never used one when I worked so I'm not sure.  DH says he thinks you can only get in during open enrollment.

[EmilieMadison]

Yes, I believe you have to opt in during open enrollment, so if you didnt do it already (and allocate the $) then you would have to wait until the next O.E.

You can use the FSA for PreK as long as both parents are working, or looking for work. In other words, a family with a SAHM can't use the FSA if the SAHM isnt working/actively seeking employment during that time.

Irs.gov will have more complete info for you, though. HTH.

[candreco]

It'll depend on your company's policies, ours you can only enroll during open season or within 30 days of a qualifying life event (like the birth of a child). I'm also not sure that preschool programs counted as childcare in ours, I don't believe they do.

[Bonita]

We don't currently use it for that, but plan on it later on down the road

You can look at Publication 503 for more information I believe (at least that defines qualifying persons I think).

You do have to enroll during Open Enrollment, and for my plan each time you pay your provider you would just have to fill out a claim form to get reimbursed. Also, you cannot claim these expenses as a deduction on your taxes since this money would be deposited in the FSA tax free to begin with.

[firedancer49]

We do. Yes you have to enroll during open enrollment. We submit for a reimbursement every few months and get a hefty check.

[malibu]

My H has his Dependent Care spending account maxed out. I believe it's as a PP explained-open enrollment or after a birth/adoption.

[2boys2danes]

Its been many years since we did it but I do remember that we used our sort of like a savings account....we would pay for the daycare out of pocket for like the year and then ask for it all back at once and we'd get like $5000 check which was great

[vanillacourage]

We do, and then when we get reimbursed we put it in savings. Sneaky way to pad the account.

[iammalcolmx]

Speak to your HR and see if you can start it now. There is a 5000 limit but its pretax so a great deal. Good luck to you.