While both are types of Flexible Spending Accounts (FSAs) that let you set aside pre-tax dollars, healthcare FSAs and dependent care FSAs are very different in how they work and what they’re used for.
They follow different rules, have different contribution limits, and—most importantly—offer access to funds on a different schedule.
🩺 Healthcare FSA
A healthcare FSA is used to pay for eligible out-of-pocket medical, dental, and vision expenses for you, your spouse, and dependents. This includes things like copays, prescriptions, eyeglasses, and more.
A big advantage is that the entire annual election amount is available on day one of the plan year—even though you haven’t finished paying it back through payroll deductions. This is known as the Uniform Coverage Rule.
👶 Dependent Care FSA
A dependent care FSA (DCFSA) is used to pay for child care or adult day care expenses that allow you (and your spouse, if married) to work, look for work, or attend school full-time.
Examples of eligible expenses include:
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Daycare
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After-school programs
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Summer day camps
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In-home babysitters
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Adult day care for a dependent who can’t care for themselves
Unlike a healthcare FSA, you can only spend the funds that have actually been deposited into your account. If you elect $5,000 for the year, you’ll only have access to that money gradually, as it’s deducted from your paycheck.
📊 Healthcare FSA vs. Dependent Care FSA
| Feature | Healthcare FSA | Dependent Care FSA (DCFSA) |
|---|---|---|
| Purpose | Medical, dental, and vision expenses | Child care and adult day care for work-related needs |
| Who it Covers | You, spouse, and eligible dependents | Children under 13 or adult dependents who need care |
| Annual Contribution Limit (2025) | $3,300 (employee only) | $5,000 per household ($2,500 if married filing separately) |
| Fund Availability | Full amount available Day 1 | Funds available as contributed |
| Use-It-or-Lose-It Rule | Yes (may allow grace period or $640 carryover) | Yes (may allow grace period, no carryover) |
| Tax Benefit | Reduces income and payroll taxes | Reduces income and payroll taxes |
| Employer Contributions | Allowed, with limits | Rare, and count toward the annual limit |
| Eligibility Requirement | Offered through Section 125 cafeteria plan | Must be used for care that enables you (and your spouse) to work |
📝 Final Thoughts
You can participate in both types of FSAs in the same year, as long as your employer offers them. Just be sure to understand how each one works so you can plan your elections wisely and avoid losing unused funds at the end of the year.