Dependent Care FSA Limit Increase
For plan years beginning after December 31, 2024, and before January 1, 2025, employers may allow a one-year increase to the annual Dependent Care FSA contribution limit.
- ARPA allows for an increase in the Dependent Care FSA contribution ceiling to $10500, or $5250 for married couples filing jointly.
- APRA automatically sunsets this increase at the end of the 2024 calendar year. That is to say, the maximum will be reduced to $5000 for 2025 as of right now.
- Employers who want to offer the limit increase to their employees must amend their plan documents by December 31, 2025.
Run-Out Deadline
For most of our January 1 renewal plans, the deadline to file FSA claims for the 2025 plan year is March 31, 2025. Instructions can be found on our website for How to File an FSA Reimbursement. (Please know this deadline may not apply to your group specifically.)
Consolidated Appropriations Act, 2025 (CAA)
Remember that the CAA allows for changes to be made to your FSA accounts for the 2025 Plan Year. A detailed update was posted on January 12, 2025.