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Your Contributions
Contributions to the Dependent Care Spending Accounts are made on a before-tax basis.
You generally can contribute between $240 and $5,000 a year on a before-tax basis.
  • IRS rules state that you cannot contribute more than your income or your spouse's income, whichever is less.
    • If your spouse is a full-time student or is incapable of self-care, his or her monthly income is assumed to be $250 in 2022 if you have one eligible tax dependent or $500 in 2022 if you have two or more eligible tax dependents.
    • Consequently, an employee with one child who requires care while a spouse attends school full-time for nine months of the year, would be limited to annual contributions of $2,250.
  • If your spouse contributes to a Dependent Care Spending Account, your combined contributions are limited to $5,000.
  • If you are married but file separate income tax returns, your maximum contribution amount is $2,500 a year.
Limits on Contributions for Highly Compensated Employees
Internal Revenue Service (IRS) rules impose limits on contributions to the Dependent Care Spending Account in certain situations that involve highly paid employees. In 2022, you are considered a highly compensated employee if your 2021 W-2 compensation was $130,000 or more.
These rules help ensure that the Plan doesn't unfairly favor highly compensated employees. As a result, it may be necessary to significantly reduce contributions for some participants under these rules.
You'll be notified if you're affected.