What Is A Voluntary Dependent Care Account?
• The IRS guidelines allow you to use pre-tax dollars to pay for day care services provided to your children under age 13, as well as an incapacitated parent or spouse. Per IRS regulations, this can be a licensed day care provider or an individual as long as they provide a social security number. You are eligible if you are a single working parent, you have a working spouse, or your spouse is a full-time student for at least five months during the plan year while you are working or your spouse or dependent parent is disabled and unable to provide for his or her own care. Benefits provided under a Dependent Care Account are not taxable to the employee, up to an annual dollar limit of $5,000. Back to top • What is a Health Reimbursement Arrangement (HRA)? • A Health Reimbursement Arrangement (HRA) is an account provided by and funded by your employer. BY setting up this account it allows your employee to enroll in a higher deductible health insurance plan thus allowing your health insura
