Dependent Care FSA Guide for Employers & HR
A Dependent Care FSA is one of the highest-value, lowest-cost benefits you can offer — it costs the company little beyond administration, and the 2026 limit increase to $7,500 makes it more valuable to employees than ever.
What changed for 2026
Amend your plan document
Your Section 125 cafeteria plan document must be formally amended to reflect the new 2026 limit of $7,500 before employees can elect the higher amount.
Update open enrollment materials
Enrollment platforms, benefit guides, and payroll systems all need the new limit reflected before your next enrollment window opens.
Communicate the change clearly
Most employees won't know the limit changed. A short explainer in your benefits communications can meaningfully increase adoption.
Coordinate with your FSA administrator
Confirm your third-party administrator's system and debit cards are configured for the new limit and any related plan updates.
Get the free employer guide
A short, practical checklist for rolling out the 2026 limit increase to your team.