Tips for Qualifying Life Events for Medical FSA and Dependent Care FSA

We get it. Understanding your benefits and all the rules around them can be confusing. Sterling’s Customer Service team recently pulled together a cheat sheet for our participants, to help them better understand the rules of the game for Qualifying Life Events for Medical FSA and Dependent Care FSA. We hope this helps. Please contact Sterling Customer Service with any questions however; we are here to help you understand your benefits, and make the most of them.

Qualifying Life Event Basics and Timing

Elections or open enrollment for any Plan Year can only be changed if you experience a Qualifying Life Event or terminated by employer. You cannot elect an amount less than the amount already reimbursed. To change you election or enroll, you must request an election change/enrollment with your Employer no later than 30 days after Qualified Life Event.

List of Qualified Life Events

  • A change in your number of tax dependents
  • A change in you legal marital status (including marriage, legal separation, divorce or death of a spouse)
  • A death of a dependent
  • Birth of a child, adoption of a child or placement for adoption
  • A change in your employment status that effects eligibility for health insurance benefits (for yourself, a spouse or one of your dependents)
  • A change in your dependent’s eligibility, such as when a child reaches age 13 and no longer qualifies for Dependent Care FSA.
  • A change in child and elder care cost or coverage, but this only applies to those who use a Dependent Care FSA.
  • COBRA qualifying events, Judgments Decrees or Orders, Entitlement to Medicare and Family Medical Leave Act.
  • Change of day care provider arrangements
  • Cost of care changes (unless care provider is a relative)
  • Change Spouse or Dependent start or end of job
  • Increase or decrease of work hours