It depends on the type of Dependent Care FSA program your employer has in place. There are three scenarios for funds that are left unspent in your account at the end of the plan year (12/31):

  1. If you have a DCFSA with Grace Period, you have up to 2½ months commonly after the end of the plan year to use unspent funds toward the expense incurred in the new plan year before you lose them.

  2. If you have a DCFSA Runout Date, you have up to 90 days commonly after the end of the plan year to file claims for expenses incurred during the previous plan year and get reimbursed for that previous plan year's funds.

  3. If you have a standard DCFSA, you lose any unspent funds at the end of the plan year.

    **The IRS does not allow for DCFSAs to have a rollover option.

Your employer decides on which type of DCFSA account they offer. To find out which scenario applies to you, please feel free to reach out to us via live-chat, email to support@twic.ai, call us at 844-902-2902, or ask your HR department.

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