Hi all,
So my new employer has a dependent care FSA that I can use for my child's daycare expenses. I know the yearly tax limit is $5000 (MFJ). My employer's 'benefit year' runs June 1st through May 31st.
I joined in January of this year, and I asked HR / the DFSA rep if I am eligible to max it out this year prior to the plan year ending 5/31. They said yes, but I have to get my $5000 in before May 31st, and then I have a 3 year grace period to 'use it or lose it' in accordance with how FSA's typically work.
So I did that, as of my next pay period I'll max out at $5000, immediately reimburse myself for childcare expenses I incurred between January and now.
Then I planned on dropping my contribution back to the minimum required to max out every 12 months of payroll.
However - I just realized - doesn't that mean I've contributed the maximum ($5000) I can do in 2019? And if I continue to contribute once my company plan year ticks over June 1 I'll be violating the IRS max? I can't imagine the IRS gives a crap about my company 'plan year'.
I hope I'm not now in some awkward situation where I have to front load my contributions every January to May now going forward.
Thanks!