What Are The Disadvantages Of The Dependent Care Flexible Spending Account?
By not paying FICA taxes, you will also be reducing your Social Security contributions. Studies have determined, however, that your tax savings generally outweigh your Social Security benefit reduction. Any money in your DCFSA that is not used by the end of the year will be forfeited. Therefore, it is in your best interest to be conservative when estimating your contribution. Based on group participation, certain employees who are deemed to be highly compensated or key employees may have their participation restricted. You will be notified if this provision applies to you.
