DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT (DCFSA) FOR MILITARY PERSONNEL:
R 081728Z NOV 23 MID120000610743U
FM CNO WASHINGTON DC
INFO CNO WASHINGTON DC
PASS TO OFFICE CODES:
INFO CNO WASHINGTON DC//N1//
MSGID/GENADMIN/CNO WASHINGTON DC/N1/NOV//
SUBJ/DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT (DCFSA) FOR MILITARY
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.
REF D IS ALNAV 089/23, DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS FOR MILITARY
RMKS/1. This NAVADMIN announces the implementation of Dependent Care
Flexible Spending Accounts (DCFSA) for Sailors on Active Duty or Reservists
serving on Title 10 orders, in line with references (a) through (d). The
DCFSA is a pre-tax account used to pay for eligible dependent care services,
such as pre-school, 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. To be eligible for enrollment in a DCFSA, Sailors must be
on Active Duty or be Reservists serving on Title 10 orders, and have eligible
dependent care expenses that allow the Sailor and spouse to work, look for
work, or attend school full-time. For complete eligibility information, see
a. Eligible Sailors may enroll in a DCFSA for the 2024 plan during the
Federal Open Season from 13 November through 11 December 2023. Enrollment
will be processed by the Federal Flexible Spending Account Program
at https://fsafeds.com/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
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 Sailors' biweekly paycheck beginning the 15th of the month for the
effective year of eligibility (e.g., 15 January 2024) and deposited into
d. Funds are available in the Sailors' 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.
e. Contributions should be carefully planned to not 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 2025 for those that enrolled for 2024 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 2025 for those enrolled in the 2024 federal
h. Re-enrollment. Eligible Sailors must re-enroll each year during the
Federal Open Season to continue participation.
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
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 families' financial budget and tax situation.
a. Office of Financial Readiness DCFSA webpage:
b. Military OneSource:
c. FSAFEDS: https://fsafeds.com/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
6. Released by Vice Admiral Richard J. Cheeseman, Jr., N1.//