The EMPOWER Adoption Assistance Account is for qualified expenses paid in connection with adopting a child.

Employees set aside pre-tax funds to pay qualified expenses, including home study and application fees, reasonable and necessary legal adoption fees, court costs, attorney fees, agency fees, medical service and counseling fees, travel and lodging fees, and other expenses which are directly related to a legal adoption.

To qualify, adoption expenses must be for a child under the age of eighteen at the time of the adoption, a child who is physically or mentally incapable of caring for him or her self, or a child with special needs who cannot or should not be returned to the home of his or her parents. The child must be a U.S. citizen or resident.

Although the Employee won’t save FICA taxes on the amount set aside in the EMPOWER Adoption Assistance Account, the Employee will save federal and state taxes where applicable.