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As we are expecting a little one later this year, I am already thinking about child care and ways to save.
My work offers a Childcare FSA - where I can contribute up to $3,333.33 and my company will match $1,666.67. This is a deal, so I definitely want to take advantage. Between the company contribution and tax benefits, it is more beneficial than the childcare tax credit.
We will start the FSA in January as we won't have our little on in child care until mid-November. Starting for the month and a half just doesn't seem to make too much sense logistically.
So my question is for those who utilize the FSA - how do you budget for child care expenses? I am thinking that it may make sense to budget for the upfront childcare costs and then submit for reimbursement throughout the year. The funds that come in from the reimbursement (which are not paid out until they are taken from pay each paycheck) can go into the snowball as they come in.
I am looking for any input - feel free to share how you may do it!
My work offers a Childcare FSA - where I can contribute up to $3,333.33 and my company will match $1,666.67. This is a deal, so I definitely want to take advantage. Between the company contribution and tax benefits, it is more beneficial than the childcare tax credit.
We will start the FSA in January as we won't have our little on in child care until mid-November. Starting for the month and a half just doesn't seem to make too much sense logistically.
So my question is for those who utilize the FSA - how do you budget for child care expenses? I am thinking that it may make sense to budget for the upfront childcare costs and then submit for reimbursement throughout the year. The funds that come in from the reimbursement (which are not paid out until they are taken from pay each paycheck) can go into the snowball as they come in.
I am looking for any input - feel free to share how you may do it!
. It's been about 10 years since I had to do this but I always had to pay the first so many weeks out of pocket and then turn in my receipts and used the reimbursement to pay subsequent weeks. My kids only went to day care part time so our spending account paid for it all.
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