Q.- We are requiring all employees to return to office work. Will this mandate allow dependent care FSA participants to change their election amounts?
A.- A return-to-work mandate would likely allow an employee to make a prospective increase to their DFSA election under IRS rules as a significant change in the cost or coverage of dependent care.
Before approving a mid-year change, you should remember that the change must be consistent with the event (i.e. an increase in election because the parent is working longer hours) and the change must be prospective, only.
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This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.