DCA – Dependent Care Account
A Dependent Care Account (DCA) is designed to benefit employees with young dependent children or disabled dependents of any age.
Section 129 of the Internal Revenue Code provides for dependent care assistance plans (DCAPs). A DCAP is an employer-sponsored benefit plan that allows employees to pay for certain dependent care expenses on a tax-free basis, up to a specified limit. Typical DCAP expenses include babysitting and day care costs while the employee and his or her spouse are working.