What is a dependant care spending account under a flex plan?

Question

Please explain how it works and How soon can I use the money I put in?

Answer 1

Dependant care under your flex plan is usually used for daycare.  

Answer 2

Basically you have up to $5000 taken out of your paycheck before they calculate payroll taxes.  That money is then used to reimburse you for the cost of daycare.  At my work, I just needed proof of daycare and they give me the cash right back at the same time they pay me (both go in as direct deposit).

You need to contact your HR department at work to find their specific flex reimbursement rules.

Be aware though that the money used towards the flex plan reduces the amount of daycare costs available to calculate the dependant care credit on your income tax return.