Yes, an adult may qualify as a dependent provided that the employee is providing more than half of that individuals support for the year, and the dependent lives with the employee and is physically and/or mentally incapable of caring for him/herself.
Once you make an election, you may not change your election unless you experience an IRS “Change in Status” or “qualified life event.” If you do experience a qualified life event or change in status (such as marriage, adoption, divorce, etc.) your election change must be consistent with the Change in Status event. For example, if you adopt a child then you may increase your Dependent Care FSA election due to the newly eligible dependent.
No. Each year you will have to re-enroll before the beginning of the Plan Year. At that time, you will have the opportunity to evaluate the need to participate in the Plan as well as budget for all health care and/or dependent care expenses. You may decide to keep the same election, change your election or in some cases waive participation.
No. However, you are required to submit his/her Tax Identification Number or Social Security Number when filing your Federal Income Tax return.
No. Participants can still choose to contribute the full FSA annual maximum allowed for that plan year, even if they carry over $500 from the previous plan year.
