For the 2021 plan year only, the Dependent Care FSA limits for pre-tax contributions increases to $10,500 (up from $5,000) for single taxpayers and married couples filing jointly, and to $5,250 (up from $2,500) for married individuals filing separately. ARPA does not provide an exemption from IRS non-discrimination testing of Dependent Care FSA plans. Accordingly, at this time, the 2021 Dependent Care FSA contribution limit for NYU faculty and employees whose annual salary exceeds $130,000 (the IRS definition of a Highly Compensated Employee) will remain at $2,600.
Beginning May 3, 2021, eligible employees may enter a new Dependent Care FSA election or change an existing election via the Benefits Resource Center.
- Login to NYUHome, select the Work page, and click "Go" on the Benefits Resource Center card, then navigate to the Report a Qualifying Change card, click Declare an Event, and choose Change to Dependent Care Flexible Spending Account.
- Any election updates are prospective; contributions will be prorated and deducted from the remaining 2021 paychecks.