General FSA questions
You can find many of the commonly asked questions about dependent day care flexible spending accounts (FSAs) below.
What is a dependent day care FSA?
A dependent day care FSA is an employer‑sponsored benefit that allows crew members to contribute to a savings account to pay for eligible dependent day care expenses with pre‑tax income. Paying these expenses with pre‑tax dollars reduces your tax bill and, therefore, saves you money.
Who is Vanguard's FSA provider?
Vanguard's health care FSA is administered by PayFlex®, part of the Aetna family.
How much money should be contributed to an FSA?
Take a look at your past year's out-of-pocket dependent day care expenses to get the best idea. The maximum amount that can be contributed annually is $2,500 or $5,000 for the dependent day care FSA (depending on your tax filing status).
What if the entire FSA balance is not used?
Any unused balances are forfeited at the end of the plan year, so estimate your annual pledge carefully.
Can an FSA election amount be changed?
Changing election amounts during the plan year is not allowed unless you experience a permitted election change (e.g., marriage, divorce, death of a spouse or dependent, birth or adoption of a child) or you experience a change in cost from the dependent day care provider.
How do FSA contributions pay for my expenses?
A crew member's annual contribution election is divided by the number of paychecks received for the year, and that amount is deducted from each paycheck before taxes. The funds are then deposited into the FSA and are available for eligible expenses.
Crew members can only access the amount that has been contributed year to date from their dependent care FSA.
To learn how to access the pre-tax balance in a dependent day care FSA, see the Claims submission and reimbursement questions.
Can I use money from my health care FSA if I run out of money in my dependent day care FSA?
No. Health care and dependent day care FSAs are two separate types of accounts. Money cannot be transferred between them.