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Dependent Care Provider or Cost

A change in your dependent care provider or cost will allow you to make certain changes to your Dependent Care FSA.You must make these changes within 30 days of the event. A letter from the provider will be required as documentation. If participation is being lowered or stopped, no refunds will be issued for deductions already taken.

Make Benefit Changes

Dependent Care Changes Changes You May Make to Your Dependent Care FSA

Your provider or facility has closed temporarily or permanently.

You can increase your election prospectively if your substitute care will cost more

You can decrease your election prospectively down to the value of contributions that have been deducted through payroll (year-to-date). No refunds for contributions already taken prior to the life event change date will be allowed.

Documentation Required: Notice from the provider or facility of the closure in the form of a personalized or generic letter, email or notice posted on the provider’s website.

Your dependent ceases to satisfy the eligibility requirements (e.g., a child attains 13 years of age)

You may decrease your election You can decrease your election prospectively to the greater of:

  1. The value of contributions that have been deducted through payroll, up to the 13th birthday of the dependent, or
  2. The amount of reimbursements that have been issued through the Dependent Care FSA year to date.
No refunds for contributions already taken prior to the life event change date will be allowed.

Change from one daycare center to another, which charges a different rate, for a reason such as:

  • Concern about a center's administration, staff quality, or staff turnover;
  • The center only cares for children age two or over, a new baby arrives and the participant wants care for the new baby and siblings at one center;
  • A child is in a temporary center while wait-listed for a preferred center, and a position opens;
  • A new, state-of-the-art facility opens and participant enrolls child at the new center;
  • A change in the participant's residence or work location makes a new center more convenient or results in a change in the cost of coverage of your daycare provider;
  • A center requires that a child be moved due to the child's unsafe behavior (e.g., biting or hitting) or a parent's frequent late child pickups; or
  • A child needs to be moved from a daycare center due to chronic illness.

Increase or decrease election amount consistent with a change in qualified dependent daycare expenses. (If the new child care center is more expensive, the election amount may be increased in a corresponding amount.)

Change in home child care provider, including a change in a nanny-sharing arrangement. (IRS regulations provide that a cost increase by a child care provider who is a relative will not allow an election change.)

Increase or decrease election amount consistent with a change in cost.

Change in home child care provider because a relative or friend has agreed to watch the child for free.

Decrease or cancel election prospectively to the greater of:

  1. The value of contributions that have been deducted through payroll, up to the date of the life event change, or
  2. The amount of reimbursements that have been issued through your Dependent Care FSA year to date.
No refunds for contributions already taken prior to the life event change date will be allowed.

The child starts school and needs fewer hours of care.

Decrease or cancel election prospectively to the greater of:

  1. The value of contributions that have been deducted through payroll, up to the date of the life event change, or
  2. The amount of reimbursements that have been issued through your Dependent Care FSA year to date.
No refunds for contributions already taken prior to the life event change date will be allowed.

The child begins attending daycare in the middle of the year

Begin participation in the plan or increase election amount consistent with the change in cost

Employee or spouse changes work schedules (including to or from part-time status), changing the hours of outside child care required and the amount of eligible dependent care expenses.

Increase or decrease election amount consistent with the change in cost.

(Consistency rule is satisfied if change corresponds with life event change that affects either eligibility for coverage under Plan or eligibility of expenses under applicable IRS regulations.)

Making FSA Plan Changes