Dependent care flexible spending account (DepCare FSA)

Newly hired employees, newly benefit-eligible employees and those experiencing a qualifying life event can enroll through their UCPath online account during their Period of Initial Eligibility.

You must re-enroll annually during Open Enrollment if you want to continue participating. Enrollment does not continue automatically into the next plan year.

You contribute up to the IRS limit each year to use for qualifying dependent care expenses. In 2026, that’s $5,000 for most people. Your FSA contributions are deducted from your paycheck before taxes are withheld, which reduces your taxable income and saves you money on taxes (depending on your situation).

The IRS defines employees who earned $160,000 or more in 2025 as “highly compensated.” Their DepCare FSA contributions are limited to $3,200 in 2026 in order to meet IRS requirements.

The Dependent Care FSA is a use-it-or-lose-it plan, with a grace period for using the funds in your account. You’ll lose any money that you haven’t spent on eligible expenses by the end of the grace period, and claimed by the deadline.

For 2025, the grace period is January 1 through March 15, 2026, and the deadline to submit claims is April 15, 2026. For 2026, the grace period expires March 15, 2027, and the deadline to submit claims is April 15, 2027.