Dependent Care FSA Contribution Limits & IRS Regulations The IRS sets the maximum dollar amount you can elect and contribute to a dependent care lexible spending account (dependent care FSA). The annual contribution limit is: Per household: $5,000 Per person (if married and filing separately): $2,500 Although most people incur more than the limit per year, we recommend reviewing how much you spend on eligible dependent care expenses every year to determine your election.
Funds available as you contribute Funds will be available to you as they’re deducted from your paycheck and contributed to the plan. This means when payroll is processed and your paycheck is available to you, your dependent care FSA contributions will be applied to your account and available for reimbursement. Use-or-lose Don’t forget to spend your FSA dollars. If you have not used all of your FSA dollars before the end of the plan year, you will forfeit any money left in your account. (Check with your employer to confirm how many days you have to submit claims for reimbursement after the plan year ends.)
Fast Fact A great way to set it and forget it is to use our Recurring Dependent Care Form that allows you to submit one claim for the entire year and you will be reimbursed after each payroll.
Changing your dependent care FSA election In order to make changes to your election after open enrollment, you need to experience a qualifying life event. These events include:
• Gain or loss of eligibility due to a change in participant, spouse or dependent employment status • Change in daycare providers • Child turning age 13
• Change in marital status • Change in the number of dependents • Increase due to birth, adoption or marriage • Decrease due to death, divorce or loss of eligibility
• Increase or decrease in the cost of qualifying daycare expenses • Judgement, decree or order requiring a change in coverage
If you experience a qualifying life event, contact your employer to make changes to your election.
Simplifying benefits for everyone.
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