Using a Dependent Care FSA for Summer Camp
Can my Dependent Care FSA really be used to pay for summer camp?
Adjusting DFSA Election When Child Care Needs Change
Can an employee stop contributing to a Dependent Care FSA if a family member begins providing child care?
Q: Can an employee stop contributing to a Dependent Care FSA if a family member begins providing child care?
A: Possibly. IRS regulations allow employers to permit a mid-year election change for a Dependent Care FSA when there is a significant change in coverage, such as switching from a paid child care provider to care provided by a family member. If the employee will no longer incur eligible dependent care expenses, the employer may allow the employee to reduce or stop future contributions, provided the employer’s cafeteria plan document permits this IRS-approved election change. Employers should review their plan document or consult their benefits administrator before approving the request.
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This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
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