Dr. Friday explains how to maximize your Dependent Care FSA before it expires at the end of the year. Unlike health savings accounts, FSAs have use-it-or-lose-it rules, with only a small portion eligible for rollover. Don’t let your funds go to waste—now is the time to use them for eligible expenses like childcare or healthcare costs.
Transcript:
G’day, I’m Dr. Friday, President of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Does your employer offer dependent care FSA limits? Then you need to make sure that we’re getting close to the end of the year. Those limits do expire, right? They go away. So if you haven’t spent all of your FSA, you need to go spend it now. And health care, child care, and there’s limitations. Now, I do believe a small amount of it will be able to remain and move over. But guys, it’s not like a health savings account that will keep going and going and going. Family savings accounts are going to have limitations and you need to spend it. So now’s the time to start thinking we’re getting close to the end of the year and that’s going to have to go to zero and you’re going to lose money. 615-367-0819.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on… 99.7 WTN.