Dependent Care Spending Account

Who can I cover under my Dependent Care Spending Account?
  • Who can I cover under my Dependent Care Spending Account?
    You can cover the following individuals under your Dependent Care Spending Account:
    • A qualifying child under age 13, who is claimed as a dependent for federal income tax purposes. A qualifying child must reside with the participant for more than half the year and must not provide over half of his/her own support.
    • The participant’s legal spouse, who is physically or mentally incapable of self-care.
    • A qualifying relative who is physically or mentally incapable of self-care, provided:
    - The participant provides more than one half of that person’s support.

    - The qualifying relative can be claimed as a dependent on the employee’s federal income tax return.

    - The qualifying relative is not a qualifying child of the participant or any other tax payer.
What expenses can I pay with my Dependent Care Spending Account?
  • What expenses can I pay with my Dependent Care Spending Account?
    Your Dependent Care Spending Account funds can be used tax-free to pay for dependent care expenses. Eligible expenses include:
    • Care provided in participant's home, even when household services are also provided, however, participant must separate expenses for care from expenses for household services.
    • Care provided outside participant's home for persons who regularly spend at least eight hours a day in participant's home. Dependent care centers that provide care for more than six people who don't live at the center must comply with applicable state and local regulations.
    • Expenses for a baby sitter or day care facility.
    • Before or after school care for a child under age 13

    Refer to IRS Publication 503 for a more complete list of qualified dependent care expenses.
How much can I contribute to my Dependent Care Spending Account?
  • How much can I contribute to my Dependent Care Spending Account?
    In general, you can contribute up to $5,000 a year ($2,500 maximum if you are married and file separate tax returns). Due to IRS regulations if you are a “Highly Compensated Employee” as defined by the IRS, you may notice during annual enrollment that you are capped at contributing a lower amount of $1,800 – this is because plan non-discrimination testing results have determined that we need to limit this amount. Otherwise we may need to cut your contributions mid-year.
What is the difference between the Healthcare Spending Account and the Dependent Care Spending Account?
  • What is the difference between the Healthcare Spending Account and the Dependent Care Spending Account?
    The Dependent Care Spending Account is a tax-advantaged savings account designed to help you pay for qualified expenses used in the care of an eligible dependent, such as for day care. The Healthcare Spending Account is a tax-advantaged savings account designed to help you pay for qualified medical, dental, prescription, and vision expenses. Both are governed by IRS rules.
Is the Dependent Care Spending Account a way to pay for my family’s medical expenses?
  • Is the Dependent Care Spending Account a way to pay for my family’s medical expenses?
    No, the Dependent Care Spending Account does not cover any medical, prescription drug, dental, and vision expenses. It only covers eligible dependent day care expenses.
How does the Dependent Care Spending Account work?
  • How does the Dependent Care Spending Account work?
    Contact the Newell Brands Benefits Center at 1-833-4NEWELL (463-9355) or visit WellatNewell.com .
How much should I contribute to my Dependent Care Spending Account?
  • How much should I contribute to my Dependent Care Spending Account?
    You can use your prior year’s expenses as a base to help you calculate your future expenses. The Dependent Care Spending Account has a “use it or lose it” rule, so any funds you don’t use by the end of the year will be forfeited. Contact the Newell Brands Benefits Center at 1-833-4NEWELL (463-9355) or visit WellAtNewell.com .
What happens to the money in my Dependent Care Spending Account at the end of the year?
  • What happens to the money in my Dependent Care Spending Account at the end of the year?
    Any money that is left is forfeited if there are no claims incurred by December 31.