DCFSA contribution and BBB

[stepingum]

It's Open Enrollment season and this one is stumping me. We have a preschooler and plan to spend $xxxx on his preschool in 2022. Our AGI is less than 100% of our state's median income so it seems like there is a good chance pre-k will be free. Should we contribute to a DCFSA? Is this a roll of the dice, or does someone have a better understanding of how this might get implemented?

[seattlecyclone]

Nobody knows whether the bill will even pass, much less what will be in it. I guess I'd probably err on the side of caution with use-it-or-lose it FSA funds and not fund it for this year.

[much ado]

My insurance let me make changes to my DCFSA mid-year, if there was a change in the price of daycare, which included changes due to tax changes. So, I'm planning on not contributing to the DCFSA next year until we know if/what the changes will be.
2020 - DCFSA was the best for us
2021 - DCFSA was the best, until the child care tax credit increased to 50%
2022 - Will BBB cap child care expenses at 7% of AGI, or will the increased child care tax credit be extended, or nothing? We'll see. I'm planning on not contributing to the DCFSA for at least the first part of the year.

[JJ-]

My insurance let me make changes to my DCFSA mid-year, if there was a change in the price of daycare, which included changes due to tax changes. So, I'm planning on not contributing to the DCFSA next year until we know if/what the changes will be.
2020 - DCFSA was the best for us
2021 - DCFSA was the best, until the child care tax credit increased to 50%
2022 - Will BBB cap child care expenses at 7% of AGI, or will the increased child care tax credit be extended, or nothing? We'll see. I'm planning on not contributing to the DCFSA for at least the first part of the year.

Thank you for pointing out what many forget, a change in cost is a QLE for dependent care FSA.

I'm in the opposite camp as I've elected fund it for the first part of the year but plan on adjusting when/if the cost changes. This is only because I'm working the first part of the year but not the later. The contributions will not exceed 7% of our income.

[stepingum]

Oh wow, I didn't realize change in cost was a QLE. Problem solved, thank you!