Financial Well-being

Child and elder care pretax savings account

If you pay someone to care for your child or adult relative, you can save money on these costs by setting aside pretax dollars through a child and elder care flexible spending account (FSA).

You can put money into this account each year through automatic payroll deduction. If you file taxes as an individual, you can set aside up to $7,500. If you are married and file taxes separately, you can set aside up to $3,750.

Also, you can spend the full amount you plan to set aside this plan year, even if it hasn’t been fully funded yet through your payroll deductions.

The money in this account does not roll over, so take care not to contribute more than you plan to spend.

The health system offers the child and eldercare FSA through Fidelity, the same partner who administers our retirement plans.

Child and elder care flexible spending account

WHAT is a child and elder care FSA?

Are you paying for care for a child under the age of 13? Or caring for an elderly parent or dependent adult? A child and elder care FSA is a tax-advantaged account that helps you save on your dependent care expenses.

WHO can contribute to a child and elder care FSA?

Any benefits-eligible employee can establish a child and elder care FSA – even if you have an HSA or healthcare FSA.

WHY use a child and elder care FSA?

Money you contribute to the account is deducted from your salary before taxes. This deduction reduces your taxable income, saving you money on taxes.

Use the child and elder care FSA to pay for qualiﬁed expenses such as preschool, summer day camp and day care for a child or dependent adult. For a complete list of covered expenses, refer to IRS publication 503. Read this overview about child and dependent care FSAs to deepen your understanding.

IMPORTANT things to know

FSA balances expire. It’s therefore important not to contribute more than you spend, as unused funds do not roll over from year to year.
- However, there is a grace period for the 2027 benefit year until February 29, 2028, to incur expenses; claims for reimbursement for 2027 expenses must be submitted by April 30, 2028.
You can contribute up to $7,500 to a child and elder care FSA if you file taxes as an individual or as a married couple filing jointly, or up to $3,750 if you’re married filing separately. You’ll choose your amount during benefits enrollment.

HOW it works

You submit receipts and get reimbursed through Fidelity’s NetBenefits, available online and via a mobile app

At a glance: Child and elder care FSA

	Child and elder care flexible spending account (FSA)
Who can open the account?	Any benefits-eligible employee.
Why should I open an account?	To save for dependent care expenses expected in 2027. The money you set aside in the FSA is not subject to taxes, so you take home more of your paycheck.
How can I use the money?	To pay for eligible expenses at licensed day or elder care centers, nursery schools, day camps and home care with valid tax ID numbers.
What if I don't use the money in 2026?	Any unused funds are forfeited. You have until April 30, 2028, to submit claims for eligible expenses incurred Jan. 1, 2027-Feb. 29, 2028.
When can I use the money in my account?	Money you contribute from each paycheck is available as soon as it's added to your account.
Can I invest the money in my account?	No
How much can I contribute?	Up to $7,500 as an individual or as a married couple filing jointly; up to $3,750 as a married couple filing separately.