Elder Care: FSA Eligibility

Elder care reimbursement is not eligible with a flexible spending account (FSA), health savings account (HSA), a health reimbursement arrangement (HRA) or a limited care flexible spending account (LCFSA). Elder care may qualify under a dependent care flexible spending account (DCFSA) when the elder lives with the account holder for 8 or more hours per day.

What is Elder Care?

Elder care is composed of fees paid to adult care facilities, services in or out of the home such as an attendant or nurse, or services by a housekeeper who also performs caretaking duties. Elder care that allows the account holder to stay employed, seek gainful employment, or study as a full-time student can be considered for eligibility under a consumer-directed healthcare account.

The purpose of elder care reimbursement under a consumer-directed healthcare account is to allow you to continue gainful employment or searching for employment while caring for an elder who lives in your home for 8 or more hours per day. Students who study full-time can also seek reimbursement for elder care expenses.

How is Elder Care claimed for Reimbursement?

Elder care must be claimed individually, by expense. Each expense must be taken on behalf of the individual taking care of the elder, allowing the individual to work, seek gainful employment, or study as a full-time student.

Carefully review your plan for limitations on other expenses and activities, which may vary.

When is elder care reimbursement eligible?

Elder care may be eligible for reimbursement with a dependent care flexible spending account (DCFSA) if the adult lives with you at least 8 hours of the day and is claimed as a dependent on your Federal Tax Return. For a Dependent Care FSA, the expenses for elder care will qualify for reimbursement if they allow the FSA holder and his/her spouse to be gainfully employed, search for gainful employment, or study as a student full-time.

Eligibility Table

Flexible Spending Account (FSA) Limited Care FSA Dependent Care FSA Health Savings Account (HSA) Health Reimbursement Account (HRA)

Eligible

Eligible with Rx

Eligible with LMN

Not Eligible

Specifically Not Covered

Not eligible with an FSA,Limited FSA, HRA or HSA

 


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