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Temporary Relief for Dependent Care Assistance Programs
Frost Brown Todd LLC 
May 18, 2021 "The increase in the annual limit [to $10,500] is only for 2021. For 2022, the annual limit will again be $5,000 unless future legislation raises the limit.... If highly compensated employees utilize the higher limit in 2021 to a greater degree than non-highly compensated employees, this could cause the dependent care flexible spending account program to fail the average benefit test and require that highly compensated employees include the benefits they receive in 2021 as income." |
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