Dependent Care Reimbursement Accounts

Dependent care reimbursement accounts allow plan participants to use salary reductions for child care and dependent care expenses on a pre-tax basis.

CDSA-Dependent Care

  • The dependent must be under the age of 13, or physically or mentally incapable of self care
  • The care cannot be provided by a spouse or dependent
  • Employees save on federal and state income tax, along with FICA and Medicare taxes (approximately 30%)
  • Employers save on FICA and Medicare taxes (7.65%)
  • IRS non-discrimination rules apply
  • Must have a written Plan Document
  • Participants are required to receive a Summary Plan Description

 

 

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