Dependent Care Account

A Dependent Care Account (DCA), also called a Dependent Care Flexible Spending Account (FSA), is a US benefits plan that allows employees to set aside pre-tax dollars to pay for dependent care expenses (child care, elder care, adult day care). You elect an annual amount (up to $5,000 in 2026), and the employer deducts it from your paycheck before income and payroll taxes. You then submit receipts for qualifying care expenses and get reimbursed from your account. It's administered by the employer (usually through a third-party benefits administrator), and the key constraint is use-it-or-lose-it: any unspent funds at year-end forfeit (though a grace period is often available).