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Dependent Care FSA limits under the American Rescue Plan Act

The increased dependent care FSA contribution limits under the American Rescue Plan Act of 2021 (ARPA) ) is an optional increase for employers that offer a dependent care FSA.

What was the contribution limit increase?

The ARPA increased the dependent care FSA contribution limits from $5000 to $10,500 for the calendar year 2021. Read more about the new law that’s bringing important changes to FSA rules.

Does Gusto support this?

If you have a dependent care FSA with Gusto, we’re unable to support the limit increases at this time. This means employees cannot increase their election amounts for the remainder of 2021 if your DCFSA is managed by Gusto.

  • If we’re able to support the contribution limit increase in the future, we’ll notify affected employers of their options.

Learn more about Gusto dependent care FSAs.

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