What type of account allows employees to defer their salary to pay for dependent care expenses?

A Flexible Spending Account (FSA) is specifically designed to allow employees to set aside a portion of their earnings to pay for qualified expenses, including dependent care expenses. This type of account enables employees to use pre-tax dollars for eligible childcare costs, thus reducing their taxable income and providing financial relief for expenses related to caring for dependents.

The advantage of an FSA is that it allows for flexible spending throughout the year. Employees can plan their contributions based on anticipated expenses for dependent care, making it an effective tool for budgeting childcare costs. These accounts can also increase employees' take-home pay by reducing the amount that is taxable, which is beneficial for families managing dependent care responsibilities.

In contrast, a Health Savings Account (HSA) focuses on health-related expenses and requires a high-deductible health plan to be eligible. A Retirement Account is for long-term savings for retirement and does not provide access to funds for dependent care expenses. Meanwhile, a Health Reimbursement Account (HRA) is employer-funded and can be used for specific medical expenses but is not structured to cover dependent care costs directly. Thus, the Flexible Spending Account is the correct option for deferring salary for dependent care expenses.