Can You Change Dependent Care FSA Contribution Mid-Year?
Dependent Care FSA elections are usually fixed for the year. Learn about the specific life events that allow you to modify your contribution and the required steps.
A Dependent Care Flexible Spending Account (DCFSA) is an employer-sponsored benefit that allows you to set aside pre-tax money for work-related dependent care services. This includes expenses like daycare, preschool, or summer day camp for a qualifying child or care for a spouse or relative who is physically or mentally incapable of self-care. By contributing to a DCFSA, you reduce your taxable income, which lowers your taxes. For 2025, the IRS allows households to contribute up to $5,000 per year ($2,500 for those married and filing separately).
When you enroll in a DCFSA during your company’s open enrollment period, you elect a specific amount to contribute for the entire plan year. Under Internal Revenue Code Section 125, that election is generally considered irrevocable, meaning you cannot change your contribution amount at will. This rule is in place to prevent employees from changing elections based on expenses they have already incurred.
The rule of irrevocability requires employees to carefully estimate their dependent care costs for the upcoming year before making their election. Once the plan year begins, your per-paycheck deductions are locked in based on that initial annual amount.
Qualifying Events Allowing Contribution Changes
While DCFSA elections are generally fixed for the plan year, IRS regulations do permit mid-year changes under specific circumstances. These situations, often called qualifying life events, are significant life changes that alter your need for dependent care. An employer’s plan must allow for these changes, and any new election you make must be consistent with the event that occurred. For example, an event that increases your care costs would justify an increase in your contribution, not a decrease.
Change in Marital Status
A change in your legal marital status—such as marriage, divorce, legal separation, or the death of your spouse—is a recognized qualifying event. These events directly impact your household structure and income, which are tied to your need for dependent care. For instance, getting married to a non-working spouse might eliminate the need for childcare, allowing you to decrease or stop contributions. Conversely, a divorce could result in you becoming newly responsible for all daycare costs, justifying an increase in your election.
Change in Number of Dependents
Adding a dependent to your family through birth, adoption, or placement for adoption is a common qualifying event that allows you to increase your DCFSA contributions. The arrival of a new child creates a new need for care services that did not exist when you made your initial election. Similarly, the death of a dependent would be a reason to decrease or cancel your contributions, as the associated care expenses would no longer be incurred.
Change in Employment Status
A change in employment for you, your spouse, or a dependent can alter your eligibility for a DCFSA or your need for care. For example, if your spouse loses their job, they may be able to care for your child at home, allowing you to reduce or stop your contributions. If your spouse starts a new job or increases their work hours, you might need to increase your contributions to cover additional care expenses.
Significant Change in Cost of Care
If your current care provider significantly changes their rates, this can qualify you for an election change. This must be a change initiated by the provider, such as a daycare center announcing a substantial tuition hike or reduction. It does not apply if you voluntarily switch to a more expensive provider simply by choice.
Change in Care Provider
Switching your dependent care provider can also be a qualifying event. This could involve moving your child from a daycare center to being cared for by a family member, or vice versa. For example, if a grandparent who was providing free care is no longer able to do so, you may need to enroll your child in a paid facility and start or increase your DCFSA contributions.
Documentation Needed to Support a Change
When you experience a qualifying life event, your employer or the plan administrator will require documentation to verify the change before approving an adjustment to your DCFSA contribution. This proof is necessary to ensure the plan remains compliant with IRS regulations.
For a change in marital status, you will need to provide a copy of a legal document. A marriage certificate is the standard proof for marriage. For a divorce or legal separation, you would submit a copy of the final divorce decree or legal separation agreement, while a death certificate is required to document the death of a spouse.
If your qualifying event is a change in the number of your dependents, you will need paperwork to establish the new relationship. For the birth of a child, a birth certificate or a hospital record of birth is sufficient. In cases of adoption, you will need to provide the final adoption papers or official placement documentation from the adoption agency.
A change in employment status for you or your spouse requires proof from an employer, such as a termination letter or an offer letter detailing the start date and work schedule of a new job. For a significant change in the cost of care, you must provide a formal notice from your care provider that details the new rate and the date it becomes effective.
How to Submit Your Contribution Change Request
You must act promptly to submit your change request after a qualifying life event, as plans impose a strict deadline for reporting. This window is typically 30 or 60 days from the date of the event itself. Missing this deadline will likely mean you forfeit the opportunity to change your election until the next open enrollment period.
The first step is to contact your company’s Human Resources or Benefits department. They will guide you on the specific procedures and provide the necessary “life event” or “election change” form, where you will officially declare your new desired annual contribution amount.
Many companies now use online benefits portals that allow you to upload the form and your supporting documents electronically. In other cases, you may need to email them to your HR contact or submit physical copies. Be sure to clarify the preferred submission method with your benefits administrator.
Once your request is submitted and approved, you should receive a confirmation notice. The change to your contribution amount will take effect on a prospective basis, meaning it applies to future pay periods. The change is not retroactive, and any funds already contributed to your DCFSA remain in the account to be used for eligible expenses incurred during the plan year.