2026 CODAC Benefit Summaries and Carrier Flyers

ADVISORY | HUMAN CAPITAL MANAGEMENT

Dependent Care Flexible Spending Accounts

The Dependent Care Flexible Spending Account (FSA) allows employees to pay for qualifying dependent care expenses using pre-tax dollars.

Dependent Care Expenses & Reimbursements

Each year, participants choose their Dependent Care FSA contribution amount through pre-tax salary reduction, lowering their taxable income for federal, state, and FICA taxes. Employees can contribute up to the IRS annual maximum.

Dependent care expenses must be for qualifying dependents, i.e., a child under age 13 claimed as a tax exemption or an adult over age 13 who lives with the participant and is unable to care for themselves. Dependent care expenses are ones incurred to enable the participant (and spouse if married) to work and may include babysitters, daycare centers, preschool tuition, before or after-school care, and summer day camps. Dependent care expenses exclude overnight camps and regular school tuition for kindergarten and onward.

The election may not be changed during the plan year unless there is a change in status event, including:

• Marriage, divorce, or legal separation • Birth or adoption of a child • Death of a spouse or dependent • A spouse gaining or losing employment • A participant or spouse switching to or from full-time or part-time employment • A change in the cost of dependent care

Reimbursement is limited to the account balance, and any unused Dependent Care FSA funds at year-end are forfeited.