Dependent Care Account
Dependent Care Reimbursement Accounts
Dependent Care Reimbursement Accounts (DCRAs) enable you to set aside pre-tax dollars to pay for eligible dependent care expenses. The maximum annual DCRA contribution allowed is $5,000 per household, or $2,500 if you’re married, but filing separate tax returns. The minimum required contribution is $120. Funds can be used to pay for day care, preschool, elderly care or other dependent care. To qualify for a DCRA, the IRS requires that the dependent care is necessary for you and your spouse to work, look for work or attend school full-time, along with other requirements. DCRA funds cannot be used for medical, dental or vision expenses for you or your dependents.