Increase Dependent Care FSA Eligibility up to age 14

Under the Consolidated Appropriations Act of 2021, Dependent Care FSAs may temporarily allow for the reimbursement of eligible dependent care expenses for dependents until they reach age 14.  This provision is available for plan years that end in 2020 or 2021 and is meant to provide additional relief for participants whose beneficiaries aged out during the pandemic. 

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The above change is not mandatory.  Employers who want to allow election changes must make an amendment to their plan no later than the last day of the first calendar year beginning after the end of the plan year in which the amendment is effective.