A Dependent Care Flexible Spending Account (FSA) is a tax-advantaged tool that helps high-income professionals pay for childcare or dependent care expenses while reducing taxable income. Doctors, dentists, residents, and other physicians often overlook this account, missing a straightforward way to save thousands in taxes each year.
This episode explains how Dependent Care FSAs work, including contribution limits, eligible expenses, and reimbursement rules. Unlike healthcare FSAs or Health Savings Accounts (HSAs), Dependent Care FSAs are specifically designed to cover daycare, preschool, summer camps, and elder care, making them a valuable part of a physician's financial toolkit.
The discussion also covers practical strategies: estimating annual care costs, timing contributions, and coordinating the FSA with other tax credits and benefits. For high-income earners, maximizing a Dependent Care FSA can improve cash flow, reduce taxes, and allow families to invest more effectively for long-term goals.
This content helps medical professionals understand how to use Dependent Care FSAs strategically, ensuring that tax-advantaged accounts are fully leveraged to support both family needs and financial independence.
We know finances can be complicated, especially when you are just beginning your journey to financial literacy. When you listen to the Financial Boot Camp Podcast, you'll learn the basics of money—how to earn more of it, how to save more of it, how and why to invest more of it; and, yes, how to safely spend more of it. Consider the Financial Boot Camp Podcast as your weekly Finance 101 class to learn what they didn't teach you in medical school or residency.
Whether you need to learn about disability insurance, the best way to negotiate a physician contract, or how to do a Backdoor Roth IRA, the Financial Boot Camp Podcast will cover all the basics. Every Tuesday, we publish an episode of this series that's designed to get you comfortable with financial terms - terms you need to know as you begin your journey to financial freedom. Best of all: Financial Boot Camp is 100% completely free.
Most doctors and high earners never learned about money. They weren't taught the best ways to pay off their debt, to build wealth, and to comfortably retire with all the money they need. That's our main goal — teaching anybody and everybody about money and finances and how they can give you your best life. We've been helping people make smart decisions about their money since 2011. We want to help you, too — to make a plan so you can enjoy the financial freedom you deserve.
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