FAQs
Most Popular Questions
How much do I have to earn to have a DCFSA?
Under IRS rules (see IRC Sections 129(a)(2)(A) and 129(b)(1)), the maximum amount that can be elected for a DCFSA is limited to the lesser of:
- $5,000 for single individuals or married couples filing joint returns;
- $2,500 for married couples filing separate returns,
- The employee's earned income (if less than $5,000 or $2,500) or
- The spouse's earned income (if less than $5,000 or $2,500).
Although the maximum limit is $5,000 at this time, your maximum yearly contribution amount cannot exceed the earned income limit. If you are single, the earned income limit is your salary (excluding your contributions to the dependent care FSA plan). If you are married, the earned income limit is the salary that is the lowest - either your salary (minus your dependent care FSA contribution) or your spouse's salary.
Please note: Your spouse may not have an earned income if they attend school full-time.