Section 129 Dependent Care Assistance Plan FSA?
Section 129 of the Code allows employers to establish a Plan so their employees can establish special tax free savings accounts called a Dependent Care Assistance Plan, or DCAP FSA. A DCAP is a special Flexible Spending Account (FSA) that enables an employee to make special pretax or tax free elections from their paycheck to pay for child and adult daycare expenses. The daycare expenses must be necessary to enable one or both parents or guardian to work, look for employment, or go to school. Employers thinking about adding a Dependent Care FSA benefit can do so simply by establishing a written plan document, a requirment of the IRS, and distribute a benefit summary plan description to every employee, a requirement of the Department of Labor. Core Documents can provide you with everything you need to establish a Section 129 Dependent Care FSA including the: Plan Document, Summary Plan Description, Election/Claim Forms and a complete Do-It-Yourself Administration Guide for only $149. The
