Day Care Changes

• Dependent child becomes ineligible at age 13:
  • Employees can drop or decrease elections.
• Dependent child begins kindergarten or first grade:
  • Employees can drop or decrease elections.
• Day care provider change rates:
  • If the provider is a relative, employees can’t make changes.
  • If the provider is not a relative and the provider’s rates increase, employees can increase their election.
  • If the provider is not a relative and the provider’s rates decrease, employees can decrease their election.
• Day care provider significantly changes coverage:
  • Employees can change their election consistent with coverage change.
• Employee changes day care provider or terminates day care services:
  • Employees can change their election consistent with coverage change.

Employees can also make changes to their dependent day care FSA for other qualifying life events, which are listed on the NCFlex website.

• Employees can contribute a maximum of $5,000 a year to a dependent day care FSA. If an employee cancels their account during the plan year due to a life event but decides to reactivate the account due to another life event during the same year, all contributions up to that point will count towards the $5,000 maximum.
• When employees sign up for dependent day care flexible spending accounts, they should remember to enter the total amount of money they want to contribute to the account for the year, not the monthly amount to deduct from their paychecks.

If you want to make changes to your dependent day care flexible spending account due to a qualifying life event, you will need to provide documents in support of your request to HR via an HR Now Case. Acceptable documents for changes to a dependent day care FSA include written proof from your day care provider stating a change in cost or enrollment status or a completed Dependent Day Care Flexible Spending Account Qualifying Life Event Form.