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BMO U.S. Benefits

Dependent Care Flexible Spending Account

The Dependent Care Flexible Spending Account (DCFSA) lets you set aside before-tax dollars from your paycheck to pay for eligible nonmedical day care expenses. Your Spending Account (YSA) administers the plan.

Here’s a high-level overview of the DCFSA. For details, review the Flexible Spending Account SPD.

Features
Contributions to your Account


  • DCFSA contributions are deducted before-tax from your paycheck, which reduces your taxable income.
  • The minimum contribution is $100 per year and the maximum is $5,000 (if you and your spouse file taxes together)/ $2,500 (if filing separately).
Eligible Dependents

Use the DCFSA to put aside money on a before-tax basis to pay for eligible dependent care expenses for your eligible dependents, including:

  • Your children under age 13
  • Your spouse or other dependent (of any age) who is physically or mentally incapable of self-care and is claimed as an exemption on your federal income tax

If your domestic partner and/or domestic partner’s children qualify as your tax dependents, their expenses are eligible to be claimed under your Dependent Care Flexible Spending Account.

Eligible Expenses

Use your DCFSA funds to pay for day care for a dependent child under age 13 or other dependent (such as an elderly parent) who is physically or mentally incapable of self support.

IRS Publication 503 has a complete list of eligible and ineligible expenses.

Reimbursement
  • Submit DCFSA claims to YSA along with your receipts for expenses.
  • You’ll receive reimbursement from your account up to the balance in your account at the time you submit your request. If you incur expenses that exceed your available funds, future claims will be reimbursed as funds accumulate in your account.
Forfeit of Funds
  • IRS regulations require that any amount over the allowed carry over amount be forfeited by December 31 if not used for reimbursement of eligible expenses.
  • You must submit claims for eligible expenses by April 30th of the following calendar year.

Manage your DCFSA

Here's how you can view and track your Dependent Care Flexible Spending Account and submit claims on YSA:

  • Go to Workday, click My Benefits & Retirement application
  • Select your network status (on or off the BMO network)
  • Click Access Your Spending Account (YSA) tile

 
 

DCFSA & income tax credit

The IRS lets you claim work-related dependent care expenses for this credit on your income tax return. You can use the Dependent Care Flexible Spending Account and the tax credit, but you cannot claim the same expenses for both.

Consult with your tax specialist and review
the Flexible Spending Account SPD.