Due to COVID-19, changes may occur in an employee’s Dependent Care situation. Employees may decrease or stop their Dependent Care Flexible Spending Account (DCRA) election as this is considered a “Family Status Change – Significant change in cost or coverage.” Employees have 30 days from the date the daycare closed or the date that a shelter-in-place order was put into effect, whichever is greater, to make a change to their DCRA election.
Employees will not be allowed to re-enroll in the benefit when the daycare re-opens if coverage is dropped. An employee can re-elect this benefit during Summer Enrollment and the benefit will go into effect 09/01/2020.
As a reminder, unused funds are forfeited at the end of the plan year per the IRS. The Dependent Care Flexible Spending Account enables you to pay for out-of-pocket dependent day-care costs with pre-tax dollars.
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