DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT FEDERAL OPEN SEASON FOR MILITARY PERSONNEL:
CLASSIFICATION: UNCLASSIFIED//
ROUTINE
R 281905Z OCT 24 MID180000017871U
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NAVADMIN 222/24
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FM CNO WASHINGTON DC//N1//
INFO CNO WASHINGTON DC//N1//
MSGID/GENADMIN/CNO WASHINGTON DC/N1/OCT//
SUBJ/DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT FEDERAL OPEN SEASON FOR
MILITARY PERSONNEL//
REF/A/DOC/SECDEF/22MAR23//
REF/B/DOC/POTUS/09JUN23//
REF/C/DOC/SECDEF/03AUG23//
NARR/REF A IS THE SECRETARY OF DEFENSE MEMORANDUM, STRENGTHENING OUR SUPPORT
TO SERVICE MEMBERS AND THEIR FAMILIES.
REF B IS EXECUTIVE ORDER 14100, EXECUTIVE ORDER ON ADVANCING ECONOMIC
SECURITY FOR
MILITARY AND VETERAN SPOUSES, CAREGIVERS, AND SURVIVORS.
REF C IS THE UNDER SECRETARY OF DEFENSE MEMORANDUM, AVAILABILITY OF DEPENDENT
CARE FLEXIBLE SPENDING ACCOUNTS FOR SERVICE MEMBERS.
RMKS/1. This NAVADMIN announces eligible Sailors may enroll or re-
enroll in a Dependent Care Flexible Spending Account (DCFSA) during
federal open season from 11 November - 9 December 2024, in line with
references (a) through (c). The DCFSA is a pre-tax account used to
pay for eligible dependent care services, such as preschool, day
camp, before or after-school programs, and child or adult daycare.
Contributions are directly deposited from pay into a DCFSA before
taxes are deducted, which reduces a member's taxable income.
2. Eligibility. Active Component (AC) Service Members, to include
Training and Administration of the Reserves (TAR) Sailors, and
Reserve Component on Title 10 or Title 32 orders are eligible for
enrollment in DCFSAs. Additionally, AC and TAR Sailors may use
DCFSAs for dependent care expenses that allow Sailors and, if
married, spouses to work, look for work, or attend school full-time.
For complete eligibility information, see
https://finred.usalearning.gov/Benefits/DCFSA.
3. Enrollment:
a. Eligible Sailors may enroll in a DCFSA for the 2025 plan
during the federal open season from mid-November through mid-
December 2024. Enrollment will be processed by the Federal Flexible
Spending Account Program at https://www.fsafeds.gov/explore/usmdcfsa. A
DCFSA enables participants to contribute $100-$5,000 per household per year
in pre-tax income to pay for dependent care expenses ($2,500 if married
and filing separate tax returns). A DCFSA operates on a calendar
year basis, starting 1 January and ending 31 December.
b. Eligible Sailors may also enroll at any time in a DCFSA
following a qualifying life event such as the birth or adoption of a
child, a divorce, or a permanent change of station.
c. Upon enrollment, the specified amount of funds will be
withheld from the Sailor's biweekly paycheck beginning the 15th of
the month for the effective year of eligibility (e.g., 15 January
2025) and deposited into their DCFSA.
d. Funds are available in the Sailor's DCFSA after each pay
period. Funds can be withdrawn to directly pay dependent care
providers or to reimburse dependent care expenses paid out of
pocket. For the procedures to file a claim, see
https://finred.usalearning.gov/assets/downloads/FINRED-DCFSAClaims101-G.pdf.
e. Contributions should be carefully planned not to exceed the
total amount of qualified expenses anticipated to be incurred during
the year.
f. There is a grace period through 15 March following the plan
year (e.g., 15 March 2026 for those that enrolled for the 2025 plan
year) to incur expenses. All claims must be submitted by 30 April
following the plan year.
g. Unclaimed contributions will be forfeited after 30 April
following the plan year (e.g., 30 April 2026 for those enrolled in
the 2025 federal plan year).
h. Re-enrollment. Eligible Sailors must re-enroll each year
during the Federal Open Season to continue participation. A
Sailor's participation will NOT automatically carry over from year
to year.
4. Things to consider before you enroll in DCFSA:
a. Review your family's budget and cash flow. Enrolling in a
DCFSA will impact your take-home pay.
b. Understand your tax benefits. Free tax software and one-on-
one help from military tax experts are available to Service Members
and their families.
5. DCFSA resources. Free assistance is available to help Sailors
make the right decision, provide enrollment information, and
understand how the DCFSA affects both their family's financial
budget and tax situation.
a. Office of Financial Readiness DCFSA webpage:
https://finred.usalearning.gov/Benefits/DCFSA.
b. Military OneSource:
https://www.militaryonesource.mil/benefits/dependent-fsa/.
c. FSAFEDS: https://www.fsafeds.gov/explore/usmdcfsa.
d. Local Command Financial Specialists and Fleet and Family
Support Center Personal Financial Managers.
e. Tax consultation from MilTax via Military OneSource at
https://www.militaryonesource.mil/financial-legal/taxes/miltax-military-tax-
services/.
6. Released by Vice Admiral Richard J. Cheeseman, Jr., N1.//
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