DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS FOR MILITARY PERSONNEL

[Tony]

CLASSIFICATION: UNCLASSIFIED// 
ROUTINE 
R 072130Z NOV 23 MID120000607521U 
FM SECNAV WASHINGTON DC 
TO ALNAV 
INFO SECNAV WASHINGTON DC 
CNO WASHINGTON DC 
CMC WASHINGTON DC 
BT 
UNCLAS 
 
ALNAV 089/23 
 
MSGID/GENADMIN/SECNAV WASHINGTON DC/-/NOV// 
 
SUBJ/DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS FOR MILITARY PERSONNEL 
 
REF/A/DOC/SECDEF/22MAR23// 
REF/B/DOC/OSD/17APR23 
REF/C/EO 14100/09JUN23// 
REF/D/DOC/OSD/03AUG23// 
 
NARR/REF A IS SECRETARY OF DEFENSE MEMORANDUM - "STRENGTHENING OUR SUPPORT TO 
SERVICE MEMBERS AND THEIR FAMILIES".   
REF B IS DEPUTY UNDER SECRETARY OF DEFENSE FOR COMPTROLLER AND DEPUTY UNDER 
SECRETARY OF DEFENSE FOR PERSONNEL AND READINESS MEMORANDUM - "DEPENDENT CARE 
FLEXIBLE SPENDING ACCOUNTS FOR MEMBERS OF THE MILITARY DEPARTMENTS".   
REF C IS EXECUTIVE ORDER 14100 - "ADVANCING ECONOMIC SECURITY FOR MILITARY 
AND VETERAN SPOUSES, MILITARY CAREGIVERS, AND SURVIVORS".   
REF D IS UNDER SECRETARY OF DEFENSE FOR PERSONNEL AND READINESS MEMORANDUM - 
"AVAILABILITY OF DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS FOR SERVICE 
MEMBERS". 
 
RMKS/1.  In accordance with references (a) through (d), Dependent Care 
Flexible Spending Accounts (DCFSA) will become available to eligible Sailors 
and Marines beginning 1 January 2024. 
 
2.  Offering DCFSAs provides an additional benefit to help military families 
manage out of pocket expenses for childcare.  DCFSAs are already available 
for the Department of the Navy civilian employees. These accounts will 
provide tax savings and assist families with budgeting for childcare 
expenses. 
 
3.  DCFSAs allow Service Members with dependents to set aside up to $5,000 
per household, in pretax income through payroll deductions to pay for 
eligible dependent care expenses, such as daycare, preschool, summer day 
camp, before- or after-school programs, and elder care. 
 
4.  Eligible Sailors and Marines will be able to enroll during the Federal 
Flexible Spending Account Program (FSAFEDS) open season period from November 
13 through December 11, 2023.  Sailors and Marines can also enroll following 
a qualifying life event, such as the birth or adoption. 
 
5.  Eligible Sailors and Marines per reference (d) are "Active Component 
Service Members and Active Guard Reserve members on Title 10 orders."   
Eligible Reserve members are those designated as Training and Administration 
of the Reserves within the Navy Reserve and Active Reserve within the Marine 
Corps Reserve. 
 
6.  Eligible expenses are dependent care expenses that allow the member, and 
spouse (if married), to work, look for work, or attend school full time.  If 
a Service Member's spouse is a stay-at-home parent, they are not eligible for 
the DCFSA.  Spouses who are physically or mentally incapable of self-care are 
exempt from work or school requirement. 
 
7.  It is important that Sailors and Marines understand the benefit before 
enrolling, as contributions that exceed eligible expenses will be forfeited.   
To help military personnel understand the DCFSA benefit, FSAFEDS and the 
Department of Defense (DoD) have published online resources available 
at https://www.fsafeds.com/explore/usmdcfsa, https://finred.usalearning.gov/Benefits/DCFSA, and https://www.militaryonesource.mil/benefits/dependent-fsa/.  In order to best understand individual eligibility, Sailors and 
Marines should seek personal assistance, particularly those with custody 
arrangements that effect their tax situation or spouses with limited income 
or who are looking for work.  The Military OneSource call center or financial 
or tax advisors are examples of available resources. 
 
8.  Fees for installation child development centers are eligible expenses 
under the DCFSA.  Service Members who receive DoD child care fee assistance 
(also known as Child Care in Your Home or Military Child Care in Your 
Neighborhood) can also participate in the DCFSA.  However, if a non-military 
spouse has a DCFSA or receives dependent care fee assistance from their 
employer, the combination of the household DCFSA contributions and the non-
DoD dependent care fee assistance cannot exceed $5,000 per tax year. 
 
9.  The Chief of Naval Operations and Commandant of the Marine Corps shall 
direct further action to inform and educate Sailors and Marines and ensure 
widest dissemination of available resources. Such direction shall identify 
Military Service points of contact for assistance providing appropriate 
information and referral. 
 
10. Released by the Honorable Carlos Del Toro, Secretary of the Navy.// 
 
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CLASSIFICATION: UNCLASSIFIED//