Question about Dependent Care????

[Guest lawdawg]

Under what circumstances may someone participating in a cafeteria plan make a mid-year election change with respect to their dependent care account?

Change in Family Status

-marriage or divorce

-death of employee's spouse or dependent

-birth or adopton of a child

-termination or commencement of employment of the employee's spouse

-switching from part-time to full-time status or vice versa

Change in Cost

Am I missing anything? What about taking leave of absence?

Any further guidance would be greatly appreciated!! Thank you.

[Guest JulieJ]

The following is my understanding of when a DCAP election can be changed mid-year. I think you have most of it correct.

1) There are 6 "change in status" events: i) ee's change in marital status, ii) change in number of dependents, iii) change in employment status, iv) dependent satisfying or ceasing to satisfy eligibility requirements, v) change in residence, and vi) commencement or termination of adoption proceedings. The change to the DCAP for such reasons is generally restricted to events that affect eligibility for the benefit or for tax exclusion.

2) Significant cost changes (e.g., the child care provider increases their monthly fees)

3) Significant coverage curtailment (with or without loss of coverage).

4) Addition or significant improvement of benefit package option.

5) FMLA leave.

Hope this helps

[Mary C]

A leave can be considered a change in employment status allowing a change in election.

Remember, DCAP accounts can only reimburse expenses incurred so you and your spouse can work or attend school (unless spouse is incapacitated and cannot care for self). Therefore, expenses incurred while on leave or vacation are not reimbursable.