Q.- We have an employee who wants to change her Dependent Day Care Flexible Spending Account Plan contribution amount because her spouse has switched from full-time to part-time employment. Can we allow her to reduce her contribution election?
A.- Yes, if permitted under the terms of your plan. The employee can decrease her Dependent Day Care FSA election amount consistent with the change in day care needs. Presumably, the number of hours the family requires for childcare is reduced due to the spouse's new work schedule. The decrease in the FSA election is consistent with the change in cost of coverage.