Can Dependent Care FSA participants who have lost preschool and childcare services due to facility closures reduce their DCA elections or terminate altogether?

Yes. Participants can reduce or terminate their dependent care account elections under these circumstances, as their childcare needs have changed. However, we advise account holders to keep in mind that they may not need to change or revoke their plan elections, even if they are not incurring any new dependent care expenses. Account holders may be able to claim their full plan year elections once the shelter-in-place orders cease, as childcare expenses can often reach the $5,000 annual contribution limit within 2-5 months. Contact Sterling if you have any questions regarding dependent care account election modifications.