It is time to participate in the election. No, not the presidential election, your flexible spending election.
If your employer offers a flexible spending arrangement now is the time to decide the amount you want to set aside for medical and dependent care expenses. Remember that these choices are carved in stone until next year so it pays to invest some time in computing a realistic amount to set aside. If you put too much away you will forfeit the unused portion. This is otherwise known as the “use it or lose it” rule. The IRS allows, but does not require, employers to extend a grace period of 2 months and 15 days.
The dependent care benefit is limited to a maximum of $5,000. Given the cost of quality daycare it is fairly likely that you will use the entire amount even with one child in daycare.
If you have questions or comments please call me t 678 624 4775 or email me at Peter@TarantinoCo.com