What is the difference between the Dependent Care ReimbursementPlan and the Healthcare Flexible Spending Account?
At first glance, the Dependent Care Reimbursement Plan and the Healthcare Flexible Spending Account look similar. They are both designed to save you money in tax savings, they are both “Flexible Spending Accounts” as defined by the Internal Revenue Service, and both are administered by FLEXONE. However, these two benefits are separate plans, designed for two different purposes. The Dependent Care Reimbursement Plan (DCRP) is a pre-tax account; but, only expenses incurred for dependent day care can be reimbursed from this account. The DCRP will not reimburse you for any health care expenses—even if they are for your dependents. Some people may think that the DCRP is for dependent health care expenses, while the HFSA is for your own health care expenses. This is incorrect. Eligible DCRP expenses include: • licensed nursery school and day care centers for children, • licensed day care centers for disabled or elderly parents, • food and education provided as part of preschool care services
