Daycare (Dependent Care) Flexible Spending Account

Attention working parents! Our Dependent Care FSA lets you set aside pre-tax dollars to help pay for eligible daycare, preschool, after-school programs, and even summer day camps. The Dependent Care FSA allows you to set aside pre-tax dollars to cover eligible dependent care expenses.

The IRS Contribution limit for a Dependent Care FSA for 2026 is $7,500 per year per family ($3,750 if you and your spouse file separate tax returns). IRS contribution limits are subject to change.

See www.irs.gov for additional information.

Dependent Care FSA Overview

Dependent Care FSA
Who can use it?	All eligible employees
How much can I contribute (pre-tax)?	Up to $7,500 ($3,750 if married and filing separately)
What can the account be used for?*	Care for children under 13, disabled children, dependent adults
When can I use the account?	You can be reimbursed up to the amount available in your account.
How do I pay for expenses?	Reimbursement
What is the last day to receive care or make an eligible purchase?	12/31/26
Can the account roll over?	No. Any unused balance at the end of the plan year will be forfeited.

*Refer to IRS Publication 503 for a complete list of eligible expenses.

Examples of Eligible Expenses

Here are a few items and services covered by the Dependent Care FSA:

After-school programs
Babysitting
Childcare
Custodial elder care
Day care
Nursery school
Preschool
Summer day camp

A complete list can be found in IRS Publication 503.

Rules to Keep In Mind

The Health Care FSA offers significant tax advantages, but are subject to IRS regulations:

All expenses for the Dependent Care FSA must be incurred during the plan year: January 1 through December 31.
For unused balances in the Dependent Care FSA, the IRS has a strict “Use it or Lose It” rule. At the end of the calendar year, any remaining funds in the account will be forfeited.
Once you enroll in the FSA, you can only change your contribution amount if you experience a qualified life event.
Each account functions separately. You cannot transfer funds from the Dependent Care FSA to the Health Care FSA, and vice versa.

For more information, visit www.wexinc.com/solutions/benefits/ or reach out to (866) 451-3399.