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Working Families Should Evaluate Dependent Care FSAs
Lockton 
[Guidance Overview] Sept. 4, 2025 "[W]orking families should carefully consider choosing a dependent care FSA instead of taking the tax credit, based on the 2026 increase in allowed FSA contributions from $5,000 to $7,500 (or from $2,500 to $3,750 if an employee is married but filing separately).... [E]mployers [should] consider taking steps to adjust their dependent care FSAs to ensure they clear the 55% discrimination test, and that they clearly communicate the options that non-highly compensated employees have in choosing between the FSA or the tax credit." MORE >> |
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