@bkktran wrote:
Thank you for your answer, Opus.
The main issue is that some companies are not adopting to the new increase. My response from HR is because due to Code, Section 129, a provision for Nondiscrimination in favor of high income earners. Both mine and my wife's employer have denied the increase due to this. I guess we are both above the income limit (whatever it may be), but as far as I understand it, company decisions for DCFSA are company wide and not based on individual incomes.
Another issue is that most companies will not let employees opt in for DCFSA during the middle of the year unless there is a qualified life event. So this increase is pretty much useless for a lot of people since employers have the final say-so for contributions.
I guess we are out of luck, but an answer is now available for those who qualify and is able to do so through their employer.
In general, there is no requirement that a company allow the new limits or mid-year changes. They are permitted to do so, but they don't have to. It depends on the company and their agreement with the benefits provider (if they outsource administration of the benefit).
The IRS notice permitting changes is here.
https://www.irs.gov/newsroom/new-law-provides-additional-flexibility-for-health-fsas-and-dependent-c...
