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Yup, my company offers FSA for medical expenses and dependent care. I have used the medical expenses FSA since I started at my current job.

I just asked a co-worker about this since I know he uses it for his child care expenses.

So I'm not sure if you've used FSA but the dependent care FSA is different from the medical expenses one. In the medical care FSA, if you put aside $2k, you can use up that $2k in January if you wanted to even though you only contributed part of that $2K. (Like if you set aside $2k, if you get paid twice a month, you will need to contribute $83 per paycheck) In the medical expense one, they give you a debit card to charge co-pays and prescriptions and stuff. So it's quite easy.

In dependent care FSA, it different because first you need to pay the chid care cost out of your own pocket then get reimburse through the FSA. Also, you are only allowed to get reimbursed for the amount currently have contributed. So it's not like the medical expense one because you have to wait for funds to accrue. So like my example above, if I contribute $83 per paycheck ($2K) into my dependent care FSA, that I can only get reimbursed $166 per month. Or you could wait a couple months to submit reimbursement.

I heard it is pretty flexible on what is qualified as dependent care. I thought it had to be a center based facility. But I heard that you can have a 'friend' watch your kid and all you have to do is sign a paper and your 'friend' has sign that, yes they watched your child and were paid X amount.

Lastly, I was worried about when I needed to join. If I need to join during the enrollment period (that just passed for me) or if I can wait. I heard that if you have life change, like marriage, divorce, a birth or a death, that you can change your contribution amount. So I didn't sign up for FSA-dependent care yet since I'm not pregnant yet but I plan to when I give birth.

Oh, these dependent care FSA are only good for household where both adults work or one is a full time student. You can't use it if you have a SAHM or SAHD. I heard this is used to benefit working families. That's what my HR dept told me.

That's what I found out.

(This is from what I heard from my coworker and my HR department. I'm not sure if it is different for different companies. I would check with your HR department to be sure, though.)

i think you have to see if your company sponsors an fsa program. our company (and my DH's company) both offer it. but haven't had the need to sign up for it yet. we do participate in the health portion (where you can use the funds for copayments, dental, eyes, etc.). used it for part of my fertility treatments too!

the ONLY bad thing is it's a use it or lose it program. so if you don't have expenses that add up to how much you put it, you lose it, but i'm sure you'll have NO problems with that for daycare~!

I'm signed up through my company for the Dependent Care FSA at my company. It is a reimbursement plan, and they only payback what you already allotted. I usually just submit mine after I get the first invoice, services have to be rendered already before they reimburse you and I have them direct deposit the money into my account. Also this is in lieu of the dependent care tax credit ($600), you can not take both.