I don't quite fully understand your answer.
I do not have any eligible child care expense in 2023. The au pair service was received in in 2024 and with the grace period limit of usage the 2023 contribution can be used till March 15, 2024.
If you never actually received the benefits in 2023 then the W2 should be corrected.
Why so? The contribution was made in 2023 the W2 reflects the contributions made not when it was used. For example it is similar to HSA contribution which shows up on W2 of the year the contribution was made even when person can choose not to use it in that year.
If you still have no 2023 expenses then as you said back in December then the distribution is taxed for the year that you received it. The plan administrator should then issue another $3600 in 2024 for those expenses.
I don't understand this statement.
