My employer is currently having open enrollment for FSAs. If you have an FSA for childcare expenses does it really save you that much money? The whole reimbursement seems like kind of a pain. I know the max is $5,000 but M doesn't start daycare until the end of February so we won't spend $5,000 on daycare costs this year. I am worried about setting aside too much and losing it (though apparently now you can roll over up to $500). What do you think? Are FSAs worth the savings?
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It is for us! You are saving the tax because you are paying your expenses with pre tax money. I wish the limit were higher. We will use up the $5000 in the first 3-4 months.
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@sunny: yup, agreed!
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It is for us, but we have a health FSA-- nothing for childcare.
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@lawbee11: How much is your chidcare?
FSA for childcare expenses is different than the one for medical reimbursement. Make sure your employer offers the one for childcare.
Depending on your plan some gives you a cc. With mine it's a online reimbursement and it is super easy. I get daycare to email me a receipt. I upload to the site and see the money in my acct within 2 biz days.
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@locavore_mama: $150/week for full-time. But we don't have to pay for weeks she's not there and my DH is a professor (has summers off) so there will be several weeks where she's not in daycare. And some weeks she'll be there part-time, which is about half the cost of full-time.
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Like @sunny: says, it's pre-tax dollars and for me, every little bit helps!
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@lawbee11: the way I look at it. Tax is usually around 30% of our paycheck so you're saving 30% on childcare. I would calculate how many weeks she'll be in daycare that PLAN year and put up to that amount in your account. Because it's UP to 5K but you don't have to put 5K.
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@lawbee11: Is it the medical Fsa account or the daycare Dca account that you are being offered?
The Dca account, you have to contribute the money before you can use it. The Fsa you get all of the money up front.
Also, the 'carry over of $500' isn't that cut and dry. Each employer has the option to adopt this new ruling but they don't have to. And, if they already offer any 'grace period' into the next year to spend the money they can't adopt the '$500 carry over' at all. -
@Crisark: my FSA money was/is never up front!
And any money in my dependent care account rolls over.LOL all this to say, read your plan rules carefully.
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@locavore_mama: That's not the federal ruling. I do this for a living.
The Medical Flexible Spending Account money is always available all up front at the beginning of either the plan year or calendar year. (depending on your company)
The Dependent Care always has to be paid in prior to the money being used.
Those are the Federal Guidelines. -
You should definitely do it! Once you figure out how to get reimbursed, it's not too difficult. I just wish it was $5,000/kid! And, you can put in only the amount you think you'll spend on childcare - you don't need to put in the whole $5,000
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@Crisark: yea, I don't know what the regulations are. But none of my FSA money was ever available upfront.
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@locavore_mama: It may not be a FSA account. Hra, Hsa and Mra accounts are all really similar but don't provide all the money up front.
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Oh yes - totally worth it!!
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