Hello Members of the Community!
FSA Dependent Care current contribution limits are $2,500 for a Single or $5,000 for a Married Couple Filing Jointly ($2,500 for each spouse).
The new Tax Bill (3rd stimulus) enacted into law provides that the contribution limit will be raised to $10,500 for a Married Couple Filing Jointly, BUT it leaves to each employer to whether or not implement it via their Benefits program (PayFlex etc...). So an Employer might technically not implement if too complex.
Question:
- Assume a couple whose spouses both work
- Assume both spouses Employers offer an FSA Dependent Care via their respective Benefits programs
- Assume neither Employer decides to implement the new contribution limit.
In that case, and despite the respective Employers have declined to implement the raise of the contribution limit, can both spouses still contribute $5,000 EACH (normally if one spouse contributes $5,000, the other spouse cannot, due to having reached the limit for the couple), FOR A TOTAL OF $10,000?
Whether or not the Employers have decided to implement the new provision, the couple should technically be safe from a legal/tax standpoint, because the law allows for a contribution limit raised to $10,500.
Am I right in my reasoning?
