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Are you using your Dependent Care Account the right way?

Are you using your Dependent Care Account the right way?

The purpose of a Dependent Care Account is frequently misunderstood. People often think it is a separate allowance for their children’s medical expenses. However, children’s medical expenses are covered under a Medical FSA. We wrote a previous article outlining the differences between Dependent Care FSAs and General Medical FSAs.

To clear up some of the confusion between these two accounts, we’re going to take a look at the situation from a Dependent Care FSA’s perspective. Specifically, if a Dependent Care FSA kept a journal.

Entry #2

Dear Diary,

I recently learned about the Sad Cat Diary. It is a hilariously honest look at what cats think. After listening to it, I felt like it would be beneficial for me to be more emotive in my posts. I will attempt to be honest while engaging in catharsis that will heal me of the lies I hear that I am for medical expenses. I am not a medical account. I am a dependent care account.

Sincerely,

Finding Myself

 

Entry #104

Spent time with an HSA today. It was so much fun. I love being able to spend time with an HSA. (Unlike Mr. “Don’t Even Try to Talk to Me” General Medical FSA who can’t be in the same room as an HSA for his life). Life is better with friends.

Sincerely,

Feeling Good

 

Entry #106

I shouldn’t be so hard on the General Medical FSA. After all, he can’t help the way he is. I can relate. For example, I don’t have the ability to help anyone unless it allows them or their spouse to be gainfully employed, look for work, or attend school full-time).

To each account its own.

Sincerely,

Empathy Matters

 

Entry #387

Dear Diary,

The new contribution limits are being announced tomorrow. I know my limit hasn’t changed in years and that tomorrow won’t be any different. I’ll be stuck at $5,000. But sometimes, I secretly wish my limits would increase based on inflation. Then I wouldn’t feel like I’m missing out on all the fun. I shouldn’t even waste energy thinking about it. There’s no hope…

Sincerely,

Stuck in a Rut

 

Entry #465

Dear Diary,

I sometimes wonder if my name is confusing. People continue to think of me as a separate allowance for their children’s medical expenses. But I don’t have anything to do with medical expenses. I feel I’m constantly in the shadow of the Medical FSA. I hate that our names are so similar.

Sincerely,

Overshadowed and Misunderstood

 

Entry #590

Dear Diary,

I’m having an identity crisis. At the core of my being, I want to help people. In every stitch of my soul, I want employees to be able to give their eligible dependents the care they need. Whether it’s through in-home care or before/after school programs, I am the only pre-tax account that can offer this kind of support. Open Enrollment season is soon. I am hopeful employees will sign up for me.

Sincerely,

Hopeful for the Future

 

Entry #601

Dear Diary,

I started guided meditations. I found the perfect one on YouTube from the Honest Guys. It is about connecting with your true identity. It helps me stay grounded in who I am with the repetitive mantra: “I am not for medical expenses. I am not for medical expenses. I am not for medical expenses.”

Sincerely,

Feeling Connected

 

Entry #653

Dear Diary,

Did some soul searching today. In addition to the guided meditations (which are going well), I’ve added in some positive affirmations.

  • I am good at: Helping employees pay for their eligible day care expenses.
  • I enjoy: Saving people money through pre-tax payroll deductions.
  • I am at my best when: People are empowered to be employed, look for work or attend school to care for a dependent claimed on their taxes.

When you combine all of those… It’s like it’s what I was made to do.

Sincerely,

Reflective Soul

To each account its own

We hope this new approach helps you to be less confused about a Dependent Care Account and a General Medical FSA. If you have dependent care expenses you need to get reimbursed for, complete this form and submit it with a claim form to Benefit Resource.

If you are thinking about opening a Dependent Care Account, download this one-page guide to determine how much you could save.