The purpose of a Dependent Care Account is frequently misunderstood. People often think it is a separate allowance for their childrenโs medical expenses. However, childrenโs medical expenses are covered under a Medical FSA. We wrote a previous article outlining the differences between Dependent Care FSAs and General Medical FSAs.
To clear up some of the confusion between these two accounts, weโre going to take a look at the situation from a Dependent Care FSAโs perspective. Specifically, if a Dependent Care FSA kept a journal.
Entry #2
Dear Diary,
I recently learned about the Sad Cat Diary. It is a hilariously honest look at what cats think. After listening to it, I felt like it would be beneficial for me to be more emotive in my posts. I will attempt to be honest while engaging in catharsis that will heal me of the lies I hear that I am for medical expenses. I am not a medical account. I am a dependent care account.
Sincerely,
Finding Myself
Entry #104
Spent time with an HSA today. It was so much fun. I love being able to spend time with an HSA. (Unlike Mr. โDonโt Even Try to Talk to Meโ General Medical FSA who canโt be in the same room as an HSA for his life). Life is better with friends.
Sincerely,
Feeling Good
Entry #106
I shouldnโt be so hard on the General Medical FSA. After all, he canโt help the way he is. I can relate. For example, I donโt have the ability to help anyone unless it allows them or their spouse to be gainfully employed, look for work, or attend school full-time).
To each account its own.
Sincerely,
Empathy Matters
Entry #387
Dear Diary,
The new contribution limits are being announced tomorrow. I know my limit hasnโt changed in years and that tomorrow wonโt be any different. Iโll be stuck at $5,000. But sometimes, I secretly wish my limits would increase based on inflation. Then I wouldnโt feel like Iโm missing out on all the fun. I shouldnโt even waste energy thinking about it. Thereโs no hopeโฆ
Sincerely,
Stuck in a Rut
Entry #465
Dear Diary,
I sometimes wonder if my name is confusing. People continue to think of me as a separate allowance for their childrenโs medical expenses. But I donโt have anything to do with medical expenses. I feel Iโm constantly in the shadow of the Medical FSA. I hate that our names are so similar.
Sincerely,
Overshadowed and Misunderstood
Entry #590
Dear Diary,
Iโm having an identity crisis. At the core of my being, I want to help people. In every stitch of my soul, I want employees to be able to give their eligible dependents the care they need. Whether itโs through in-home care or before/after school programs, I am the only pre-tax account that can offer this kind of support. Open Enrollment season is soon. I am hopeful employees will sign up for me.
Sincerely,
Hopeful for the Future
Entry #601
Dear Diary,
I started guided meditations. I found the perfect one on YouTube from the Honest Guys. It is about connecting with your true identity. It helps me stay grounded in who I am with the repetitive mantra: โI am not for medical expenses. I am not for medical expenses. I am not for medical expenses.โ
Sincerely,
Feeling Connected
Entry #653
Dear Diary,
Did some soul searching today. In addition to the guided meditations (which are going well), Iโve added in some positive affirmations.
- I am good at: Helping employees pay for their eligible day care expenses.
- I enjoy: Saving people money through pre-tax payroll deductions.
- I am at my best when: People are empowered to be employed, look for work or attend school to care for a dependent claimed on their taxes.
When you combine all of thoseโฆ Itโs like itโs what I was made to do.
Sincerely,
Reflective Soul
To each account its own
We hope this new approach helps you to be less confused about a Dependent Care Account and a General Medical FSA. If you have dependent care expenses you need to get reimbursed for, complete this form and submit it with a claim form to Benefit Resource.
If you are thinking about opening a Dependent Care Account, download this one-page guide to determine how much you could save.