Dependent Care Accounts
Dependent Care Accounts
Embedded Files
A Dependent Care FSA allows employees to allocate pre-tax earnings to pay for eligible dependent care expenses—including daycare, after-school programs, and elder care—in order to enable the employee and their spouse (if applicable) to work or attend school full-time.
Dependent Care FSA Guidelines
Dependent Care FSA Guidelines
Contributions to a Dependent Care FSA are limited by IRS regulations and are reimbursed based on the available account balance at the time of the reimbursement request. The maximum annual contribution is $5,000 of pre-tax dollars per calendar year, in accordance with IRS limits.
Employees must meet IRS eligibility requirements to contribute to a Dependent Care FSA. For example, both the employee and their spouse (if applicable) must be gainfully employed or enrolled in school full-time. More information is in the FAQs on the DCFSA Learn site.
Use-It-or-Lose-It Provision
Use-It-or-Lose-It Provision
Funds contributed to FSAs must be used within the plan year and applicable grace period or carryover amount, if offered by the District. Unused funds exceeding allowable carryover limits may be forfeited at the end of the plan year in accordance with IRS “use-it-or-lose-it” rules.
Enrollment and Changes
Enrollment and Changes
Employees must elect FSA participation during the annual open enrollment period or within a specified period following a qualifying life event, as defined by the IRS. Mid-year changes to FSA elections are permitted only in accordance with IRS guidelines and require documentation of the qualifying event.
Claims and Documentation
Claims and Documentation
All expenses must be substantiated with appropriate documentation to verify that they qualify for reimbursement. Failure to provide required documentation may result in denial of a claim or recoupment of disbursed funds.
Employees are encouraged to carefully estimate their annual healthcare and dependent care expenses prior to enrollment. For additional guidance, employees may consult the IRS or speak with a qualified benefits representative.
Your contributions to your FSA become available after each payroll period.
Your contributions to your FSA become available after each payroll period.
You have until March 31st to submit reimbursement claims for eligible expenses from the previous year.
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