Dependent Care Election Changes

[Guest mmm15]

An ABC Company employee's spouse had his annual DCRA election reduced by his employer mid-year when his employer's plan failed the nondiscrimination test. Would the regs allow this to be considered a status change under ABC's plan, allowing the ABC employee to change her DCRA election mid-year? I'm thinking it would fall under the change in coverage rule, but have not seen this scenario in any of the guidelines.

[Guest JerseyGirl]

I agree that this would fall under the heading of *Change in Coverage Under Another Employer Plan* and should be allowed. A word of warning-- you should be certain that the ABC employee understands that as a couple they can have a maximum combined total of $5000.00 on a pre-tax basis for the entire calendar year.

[Guest carsca]

I have the same issue. Are there any other thoughts on this fact pattern? Thanks.