Generally, your election cannot be changed during a plan year unless you experience a Qualified Status Change (QSC) as defined by the Internal Revenue Service. A change in election must be on account of a QSC event, so the election change must be made within the time frame required by your Employer after the QSC.
For example, you may be permitted to prospectively change an election during a plan year when one of the following changes in status occurs that affects eligibility for coverage:
- Change in your legal marital status (e.g. marriage, legal separation, divorce, annulment, death of a spouse).
- Change in number of tax dependents (e.g. birth, adoption, placement for adoption, death).
- Change in your dependent’s eligibility for coverage due to the dependent’s age, student status, marital status or similar circumstance (e.g. your child reaches age 13 so is no longer eligible for coverage under a Dependent Care FSA).
- Change in employment status of employee, spouse, or dependent that affects eligibility for the FSA.
- Change in residence or worksite of employee, spouse or dependent that affects eligibility for the FSA.
- Change in dependent care costs or coverage (e.g. change in your day care provider).