📌 The 2026 limit of $7,500 ($3,750 married filing separately) is the first increase since 1986, enacted by the One Big Beautiful Bill Act. Your employer's plan must be amended to allow the higher amount — check with HR before electing above $5,000.

Dependent care FSAs cover care that lets you (and your spouse) work: daycare, preschool, before/after-school programs, day camps, and elder daycare for a dependent adult. Unlike a health FSA, there is no carryover — unspent funds are forfeited. Compare against the federal Child and Dependent Care Credit; you cannot use the same expenses for both.