COBRA/Direct Bill Employer login
Please refer to your Client Welcome email for the URL of your specific COBRA/Direct Bill Employer login page.
Keep more of your hard-earned money. Plan your spending, know the rules and unlock amazing tax savings.
DCFSAs are tax-advantaged accounts that let you use pre-tax dollars to pay for eligible dependent care expenses. A qualifying ‘dependent’ may be a child under age 13, a disabled spouse, or an older parent in eldercare.1
You can sign up for a DCFSA as a new employee and during your organization's annual enrollment period.
It pays to be strategic.
Daycare
Nursery School
Preschool
Summer Day
Camp
Before or
After School
Programs
Elder Day Care
Here’s an example based on $4,500 annual spending and a 30 percent effective tax rate.
Daycare
$300/mo.
+
Summer camp
$500
+
After school program
$50/mo.
Annual tax savings3
Once you choose an annual contribution, your employer will deduct that amount pre-tax in equal parts from each paycheck. DCFSA funds are made available only as money is added to the account.
Tax year |
Individual and family limit4 |
---|---|
2024 |
$5,000 |
2025 |
$5,000 |
Don’t get caught by surprise. Carefully review your open enrollment materials.
Unused DCFSA funds are eventually forfeited back to your employer, so it’s important to be aware of spend-down deadlines. Consult your plan documents for complete details.
Elections can only be made during open enrollment unless you have a qualifying life event,5 which may include changes to:
Employment
status (Including
medical leave)
Marital status
Number of
dependents
Daycare closures
You can’t get reimbursed twice for the same expense (example: reimbursement + deduction from tax returns).
Check out these additional resources.
Check out our webinar to discover what expenses are covered and strategies to maximize your annual savings.
LPFSA
Limited Purpose Flexible Spending AccountComplement your HSA and save more on dental and vision.
1Optional provision: The Consolidated Appropriations Act (CAA) 2021, temporarily allows for an eligible employee to be reimbursed expenses for dependents through age 13 (i.e., dependents who have not yet turned 14) for the 2020 plan year. To qualify for this relief, you must have been enrolled on or before January 31, 2020 and you must have unused amounts from the 2020 plan year. In addition, you must have one or more dependents who attained the age of 13 during the 2020 plan year. You may also take advantage of this relief for the next plan year if unused grace period amounts from the 2020 plan year or other funds carried over into the 2021 plan year. Please refer to your plan documents or employer communications to determine if this option is available under your plan.Return to content
2Accounts must be activated via the HealthEquity website in order to use the mobile app.Return to content
3The example used is for illustrative purposes only; actual savings may vary. The figure is based on average tax rates, including state, federal and FICA taxes.Return to content
4If Married Filing Separately your limit is $2,500.Return to content
5Please refer to your plan documents for more information.Return to content
HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions.
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