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 (from Oct. 30 to Nov. 21, 2025) 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 2025, that’s $5,000, increasing to $7,500 in 2026. 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 $155,000 or more in 2024, or $160,000 in 2025, as “highly compensated.” Their DepCare FSA contributions are limited to $2,500 in 2025 and $3,200 in 2026.

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 over the carryover amount that you haven’t spent on eligible expenses by the end of the grace period, and claimed by the deadline.

For 2026, the grace period is March 15, 2027, and the deadline to submit claims is April 15, 2027.