Dependent Day Care FSA
The Dependent Day Care FSA allows you to pay for eligible dependent care expenses. You decide how much money to put aside each year, up to a maximum of $5,000 per year. This maximum is a combined limit for both you and your spouse.
Your total contribution is deducted in equal amounts from your pay before taxes and deposited into your FSA. You must have an available balance to cover any claims that are submitted.
Dependent Day Care FSAs are subject to IRS regulations that limit the amount that highly compensated employees (HCEs) may contribute. You will be notified in early each calendar year if you are an HCE affected by this IRS limitation.
You can only elect to participate or change your election as a new hire, during Annual Enrollment or if you have a qualified change in status. You must enroll every year and unused balances are forfeited if not utilized at the end of each calendar year. You have until June 30 of the following calendar year to submit for eligible FSA expenses incurred through December 31 of the prior calendar year (for which you had an Active annual FSA election).
See Publication 503 for IRS details about eligible expenses.