Which Dependents are Covered by a Flexible Spending Account (FSA)?
Dependent Care FSA
Dependent care FSA funds can be used to cover a variety of child and adult care services. Dependents who are eligible include natural, adopted, and foster children who have not reached age 13 and family members who cannot care for themselves. All dependents must live with the FSA account holder for more than half the year and be claimed on their federal tax return.
When parents are divorced, the parent the child lives with most of the time may use the dependent care FSA account even if the other parent claims the child as a tax dependent. If the dependent lives with both parents for the same amount of time per year, the parent with the highest adjusted gross income may use the plan.
Health FSA and Limited-Purpose FSA
Health FSA and Limited-Purpose FSA funds can be used to pay for certain medical, dental, and vision expenses for the account holder, their spouse, and their dependents. In addition to dependents claimed on their tax return, FSA participants may also use the account for their children who are under age 27 at the end of your tax year. There's no age limit if the child is "permanently and totally disabled.”