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Are you using your Dependent Care Account the right way?

Are you using your Dependent Care Account the right way?
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The purpose of a Dependent Care Account is frequently misunderstood. People often think it is a separate allowance for their childrenโ€™s medical expenses. However, childrenโ€™s 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, weโ€™re going to take a look at the situation from a Dependent Care FSAโ€™s 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. โ€œDonโ€™t Even Try to Talk to Meโ€ General Medical FSA who canโ€™t be in the same room as an HSA for his life). Life is better with friends.

Sincerely,

Feeling Good

 

Entry #106

I shouldnโ€™t be so hard on the General Medical FSA. After all, he canโ€™t help the way he is. I can relate. For example, I donโ€™t 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 hasnโ€™t changed in years and that tomorrow wonโ€™t be any different. Iโ€™ll be stuck at $5,000. But sometimes, I secretly wish my limits would increase based on inflation. Then I wouldnโ€™t feel like Iโ€™m missing out on all the fun. I shouldnโ€™t even waste energy thinking about it. Thereโ€™s no hopeโ€ฆ

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 childrenโ€™s medical expenses. But I donโ€™t have anything to do with medical expenses. I feel Iโ€™m constantly in the shadow of the Medical FSA. I hate that our names are so similar.

Sincerely,

Overshadowed and Misunderstood

 

Entry #590

Dear Diary,

Iโ€™m 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 itโ€™s 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: โ€œI 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), Iโ€™ve 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 thoseโ€ฆ Itโ€™s like itโ€™s 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.