Flexible Spending Accounts - An Overview - Learn How FSA and DCAP Work

Sep 19, 2026

Upload by Liam

Flexible Spending Accounts help eligible participants pay for qualified out-of-pocket medical expenses through a Health Flexible Spending Account (FSA) and dependent day care expenses through a Dependent Care Assistance Plan (DCAP) using pre-tax dollars. The material explains how to estimate expenses, enroll as directed, and how election amounts are deducted from paychecks across the plan year, with full access to the health FSA election at the start. It lists qualified medical expenses (including vision, dental, prescriptions, and certain elective surgery) and notes CARES Act OTC and menstrual eligibility, along with examples of non-reimbursable items such as vitamins and cosmetics. DCAP eligibility includes care for children under 13 and disabled dependents, excluding overnight camps and kindergarten-plus educational expenses.

LanguageEnglish

CategoryPresentations

FormatPDF

Pages28

Reading Time10 min

AccessFree to download

Flexible Spending Accounts

How to Participate

Qualified Health FSA Expenses

CARES Act OTC and Menstrual Items

Non-Reimbursable Health FSA Expenses

Dependent Care Assistance Plan (DCAP)

Qualified and Non-Eligible DCAP Expenses

FLEXIBLE SPENDING ACCOUNTS Customer Service [support@amben.com](support@amben.com) Claims [claims@amben.com](claims@amben.com) 800-499-3539 • [www.amben.com/WealthCare](www.amben.com/WealthCare) FLEXIBLE SPENDING ACCOUNTS Almost 40 Million Americans Participate in Flexible Spending Accounts Every Year. Flex Accounts allow you to pay for your eligible out-of-pocket medical expenses with the Health Flexible Spending Account (FSA) and dependent day care expenses with the Dependent Care Assistance Plan (DCAP) expenses using pre-tax dollars it’s like . . . Signing Yourself Up For A Pay Raise FLEXIBLE SPENDING ACCOUNTS Flexible Spending Accounts Allow You to Set Aside Pre-Tax Dollars to Pay for Out-of-Pocket Medical (FSA) and Dependent Care (DCAP) Expenses • For You & Your Spouse • For Your Eligible Dependents • Participation in your Employer’s Health Plan is Not Required FLEXIBLE SPENDING ACCOUNTS It’s Easy to Participate! • Estimate Your Out-of-pocket Expenses • Enroll as Directed by Your Employer • Your Election Amount will be Deducted Pre-Tax from Your Paycheck in Equal Amounts throughout the Plan Year • The Full Amount of Your Health FSA Election is Available to You from the Beginning of the Plan Year • Dependent Care Assistance Plan (DCAP) Funds will be Available to You as they are Contributed FLEXIBLE SPENDING ACCOUNTS Examples of Qualified Health Flexible Spending Account Expenses • Deductibles • Co Payments • Vision Care • Dental Care • Chiropractic • Birth Control • Hearing Care • Acupuncture • Orthodontia • Counseling • Prescription Drugs • Medical Supplies • Elective Surgery (e.g. Laser Keratotomy) FLEXIBLE SPENDING ACCOUNTS Per The CARES ACT – thousands of additional Over-the-Counter (OTC) and Menstrual items can be purchased without a prescription. Examples: • Diabetic management supplies • Hearing aid supplies • Foot therapy supplies • Band-aids • Contraceptives • Pain relief medications • Cold & Flu products • Allergy Products • Heartburn medications • Menstrual products FLEXIBLE SPENDING ACCOUNTS Examples of Expenses that are not Reimbursable from Your Health Flexible Spending Account • Vitamins or Supplements (unless they have been prescribed to treat a medical condition) • Personal Hygiene Items • Cosmetics • Teeth Whitening • Veneers FLEXIBLE SPENDING ACCOUNTS Dependent Care Assistance Plan • Allows Participants who incur Child and Dependent Care Expenses to Pay up to $7,500 per Calendar Year with Pre-Tax Dollars (for plans beginning in 2026) • All Expenses Must be Reported on IRS Form 2441 with accompanying Form W10 FLEXIBLE SPENDING ACCOUNTS Qualified Dependent Care Expenses • Care for Children Under Age 13 • Care of a Disabled Dependent • Daycare • Summer Day Camp (no overnight) • Pre-School • After School Programs FLEXIBLE SPENDING ACCOUNTS The Following Dependent Care Expenses are not Eligible for Reimbursement • Over Night Camps • Educational Expenses for Kindergarten and above • Amounts Paid to Your Dependent for Childcare

FAQs

What expenses can be paid using a Health Flexible Spending Account (FSA)?

A Health FSA can be used for qualified out-of-pocket medical expenses such as deductibles, co-payments, vision care, dental care, chiropractic, birth control, hearing care, acupuncture, prescription drugs, medical supplies, and certain elective surgery.

What does the CARES Act change for Health FSA purchases?

Under the CARES Act, thousands of additional over-the-counter (OTC) items and menstrual items can be purchased without a prescription using the Health FSA.

Which dependent care expenses qualify under the Dependent Care Assistance Plan (DCAP)?

DCAP qualifies for expenses such as care for children under age 13, care of a disabled dependent, daycare, summer day camp (no overnight), pre-school, and after-school programs.

Sep 19, 2026

Upload by Liam