Plan Option: Dependent Care Flexible Spending Account
A Dependent Care FSA is a special account you can use to set aside pre-tax dollars for eligible dependent care expenses—like daycare, preschool, or after-school programs for your children, or care for an elderly parent. This account helps you save money by reducing your taxable income. Unlike health care FSAs, these funds are specifically for dependent care, not medical costs. You contribute to the account through payroll deductions, and you can use the money to reimburse yourself for qualified expenses throughout the year.
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Dependent Care Account |
Dependent Care FSA
The 2026 annual maximum contribution for the Dependent Care FSA has increased from last year. Employees classified as “highly compensated” should be aware that if your 2026 DCFSA election does not pass the required non-discrimination test performed before the plan’s anniversary, your DCFSA election will be adjusted to pass the non-discrimination test, and those amounts will be rerun through payroll with the appropriate taxes deducted.
For 2026, the IRS defines a highly compensated employee (HCE) as anyone who:
- Earned more than $155,000 in 2024 (the look-back year), or owns more than 5% of the company, regardless of income.
| Dependent Care FSA | |
|---|---|
| What would I use this account for? | Eligible dependent care expenses, including adult day care centers, babysitters or nannies, summer day camp, before & after school programs, and child day care. |
| Who is eligible for this account? | In order to be eligible for this account, you must meet one of the qualifying criteria:
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| What is the maximum amount that I can put in this account? | The IRS pretax contribution limits are:
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| What does the company contribute? | Aleknagik Native Limited does not contribute to this account. |
| When are the funds available? | Your contribution amount is available as it comes out of your paycheck each pay period — not at the beginning of the year. |
| How do I use the funds? | You can use this account to reimburse yourself for eligible dependent care expenses for children under age 13 or anyone who is a dependent under IRS rules. |
| What happens if I don’t use the money during the year? | You have until March 31st, 2027 to submit reimbursement claims for expenses in the prior plan year.
Any unused funds at the end of the plan year are forfeited per IRS regulations. |
| This information is designed to help you choose a benefit plan for 2026 only. Please refer to the Plan Documents provided by the carrier for information regarding coverage, limitations, and exclusions. If there is a difference between this guide and the Plan Documents, the Plan Documents prevail. | |
