Flexible Spending Accounts & Dependent Care FSA

Flexible Spending Accounts (FSAs)

While HSAs appeal to a broad audience, some employees can benefit from an FSA if they have fixed and predictable medical expenses throughout the year. These accounts further enhance your employee benefit package.

• Contributions to an FSA are payroll deducted “pre-tax,” reducing the employee’s taxable income.
• This account helps pay for out-of-pocket medical expenses, including deductibles, coinsurance, and over-the-counter purchases from an extensive list of eligible items (such as allergy medicine, COVID-19 tests, first aid materials and more)

Dependent Care FSA

A dependent care FSA is a unique benefit account that helps parents, guardians or caretakers pay for caregiving costs, while also gaining some tax benefits.

• Account can help pay for expenses related to childcare centers, babysitter and nannies (birth through age 12); summer day camp; before or after-school care; disabled dependent and/or spousal care; elder care
• Employees can determine the dollar amounts they want to be direct deposited from their paychecks into the dependent care FSA
• Contributions to dependent care FSA reduce the employee’s taxable income

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