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New Year, New Dependent Care FSA Limits: Don't Forget to Amend Your Plan!
Polsinelli PC 
[Guidance Overview] Dec. 9, 2025 "The One Big Beautiful Bill Act allows employers to raise the dependent care FSA exclusion limit starting Jan. 1, 2026. This is the first time since 1986 and offers meaningful additional tax savings for employees. Employers must amend plan documents to implement the higher limit. Without a formal update, plans will not be able to offer the increased contribution cap in 2026. Plan amendments must be executed by Dec. 31, 2025 to adopt the new limit." MORE >> |
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