Dependent Care Flexible Spending Arrangement (Dependent care FSA) Law and Legal Definition

A dependent care flexible spending arrangement or dependent care flexible spending account (dependent care FSA) is a system that helps to pay expenses related to:

a. children such as expenses at a children's day care center or home child care; and

b. dependent care such as expenses associated with caring for an elderly parents that are necessary to allow children and parents to be cared and looked on a full-time basis.

A dependent care FSA is a benefit available in the United States that employees can set up by participating with the employers. The expenses that are paid from dependent care FSA are exempted from taxation.