12 Things You Didn't Know About the Dependent Care FSA 2025

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With a Dependent Care FSA, you can use your pre-tax funds to pay for childcare for dependents, age 12 or younger. Including daycare, preschool, and summer day camp. You can also pay for adult care for a spouse or a dependent who is incapable of self-care. Including elder care and in-home aids.
Some plans have a grace period, but generally if you dont use your FSA dollars in a given year youll lose the remaining cash.
Dependent Care FSAs are generally use-it-or-lose-it plans. That means if you havent spent all the money in your account by the end of the plan period, then you cant withdraw it as cash and will lose the money. However, there are sometimes exceptions where you can roll over your funds.
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On November 9, 2023, the Internal Revenue Service (IRS) announced the health flexible spending account (FSA) maximum for 2024 as part of Revenue Procedure 2023-34. As anticipated, the maximum employee contribution to health FSAs will be $3,200 for taxable years beginning in 2024, up $150 from 2023.
Dependent Care FSAs are generally use-it-or-lose-it plans. That means if you havent spent all the money in your account by the end of the plan period, then you cant withdraw it as cash and will lose the money. However, there are sometimes exceptions where you can roll over your funds.
For 2023, participants may contribute up to an annual maximum of $3,050 for a HCFSA or LEX HCFSA. The Dependent Care FSA (DCFSA) maximum annual contribution limit did not change for 2023. It remains at $5,000 per household or $2,500 if married, filing separately.
It must be for a qualifying person and for work-related care. The cost of tuition for Kindergarten or higher-level education is not eligible for reimbursement. Fee paid for late payment of the childcare bill is not reimbursable.
Most participants may contribute up to $5,000 per year. To comply with IRS non-discrimination regulations, the maximum amount a highly-compensated employee, defined by the IRS as those earning $150,000 or more in 2023, may contribute to the DepCare FSA in 2024 will be limited to $3,000.

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