Dependent Care contribution limits increase for 2021

The American Rescue Plan Act, signed into law on March 11, raises the annual limits for pretax contributions to your dependent care account to $10,500 (up from $5,000). The higher limits apply to the plan year beginning after Dec. 31, 2020 and before Jan. 1, 2022.

This pretax benefit account is used to pay for services such as day care for children under the age of 13 or dependents that are incapable of self-care and who live with you more than half the year.

If you are currently enrolled in the dependent care program the Human Resources Department will be reaching out to you to see if you would like to increase your current pretax deductions.

Employees that have experienced a qualified change in status such as a change in marital status (marriage, divorce, or death of your spouse); change in the number of dependents (such as birth or adoption of a child); or a change in employment status of you, or your spouse may be eligible to enroll. If interested, please contact Sarah at extension 5285.