We will have money left in our Dependent Care FSA at year-end. I understand that we forfeit the money, but where do these funds go or end up? My employer? The IRS?

[TaxGuyBill]

Do you still have a qualifying dependent in daycare?  If so, you may want to give your daycare provider a year-end "bonus" this year using what is left of the FSA account.  That way, rather than the money going back to your employer, it would go to your daycare provider.  You daycare provider can then perhaps improve the daycare program, have an extra party, buy more toys for the daycare children (including your child), etc..

[SweetieJean · Accepted solution]

They stay with the employer's plan.

[Critter]

The insurance company that underwrites the FSA keeps it.