Dependant FSA
 

Just signed up for the max. Everything I have found says this is a no brainer but I just wanted to verify with the masses. I never like money coming out of my check and the lose it or lose it scares me.

We pay around $1400/month for daycare and that isn't going to change in the next year. Simple math puts that near $17k/year or only 1/3rd that Ill have to hit to cover the 5 thousand.

From what I hear, I basically save my tax bracket out of that $5000 because its coming out pre tax and reimbursing us for daycare expenses.

Any reason I would NOT want this??

Nope, it's a good deal. We did it last year. Will do it again. The only part that sucks (kind of) is you have to have the $$ in the account before you can claim (unlike medical fsa). So, you're essentially paying double until you have enough in the bank to get reimbursed. That said, the process was easy, once we got the provider to get all the required info on the invoices. And, as I understand it, you can still write off the months not reimbursed by the fsa.

Great, thank you.

It won't take long because they'll take ~$450/month out and we pay more than that to the provider each month. At the end of the month we should be able to submit.

They don't allow that much of a deduction for daycare (it's capped) so this at least closes the gap I hope. Hopefully daycare knows what they're doing with regards to the receipt.

How do I get reimbursed? Once it starts up should I receive paperwork to get direct deposit set up?