Optimal Relationships Daily - Dating, Marriage and Parenting 2736: Should I Sign Up for a Dependent Care FSA? By Andy Hill of Marriage Kids and Money on How to Save Money as A Family
Sep 21, 2025
Explore the financial wisdom of utilizing a Dependent Care FSA to save on daycare expenses while navigating its critical ‘use it or lose it’ rule. Discover the advantages of maximizing workplace benefits like 401(k) matches and HSAs, which provide triple tax advantages. Learn about strategies for HSAs, including investing options and smart reimbursement practices. This conversation is packed with insights that can help families save money and secure their financial future!
AI Snips
Chapters
Transcript
Episode notes
Use Dependent Care FSA To Save Taxes
- Sign up for a Dependent Care FSA if you have eligible daycare expenses to save on taxes.
- Contribute up to $5,000 and expect meaningful tax savings (e.g., ~$1,500 at a 30% bracket).
LASIK Paid With An FSA
- Andy used a medical FSA for LASIK and saved substantially on taxes for the procedure.
- He paid about half the cost and saved roughly $700 in taxes on a $2,500 expense.
Avoid FSA Use-It-Or-Lose-It Losses
- Plan contributions carefully because FSAs are generally "use it or lose it."
- Aim to avoid losing more than the typical $50–$100 average forfeited per year.