For those with a Dependent Care Flexible Spending Account (FSA), there may be some good news on the horizon. The American Rescue Plan Act, signed into law by President Joe Biden, boosts the amount that companies can allow workers to deposit in their dependent-care FSAs for 2021. Here are some details to remember:
Although this may be deeply appreciated news for many, there is one caveat to keep in mind. Employers can choose whether to make any modifications to their plans under these temporary rule changes but are under no obligation to do so.4
Let me know if you’d like to chat about the most recent stimulus, FSAs, or any other topics you’re pondering. I’m always here to help.
1. CNBC.com, March 12, 2021
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The American Rescue Plan Makes FSAs a Little More Flexible
March 22, 2021