There are some rules to consider before enrolling in a Day Care FSA.
The Day Care FSA limit is set by the IRS and is a calendar year limit of $5000 per family. If your
plan year is not on a calendar year, take extra care in calculating your annual election.
To decide on an election amount, estimate your day care expense for the entire plan year and take
into consideration any school holidays, breaks and summer vacation. Your election will be taken out
evenly from each paycheck.
You can make a change to your annual limit if you have a qualifying event. The election
change must be consistent with the qualifying event. In addition to the normal list of qualifying
events, there are some special events exclusive to the Day Care FSA.