DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT FEDERAL OPEN SEASON FOR MILITARY PERSONNEL

[Tony]

CLASSIFICATION: UNCLASSIFIED// 
ROUTINE 
R 281905Z OCT 24 MID180000017871U 
FM CNO WASHINGTON DC 
TO NAVADMIN 
INFO CNO WASHINGTON DC 
BT 
UNCLAS 
 
NAVADMIN 222/24 
 
PASS TO OFFICE CODES: 
FM CNO WASHINGTON DC//N1// 
INFO CNO WASHINGTON DC//N1// 
MSGID/GENADMIN/CNO WASHINGTON DC/N1/OCT// 
 
SUBJ/DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT FEDERAL OPEN SEASON FOR 
MILITARY PERSONNEL// 
 
REF/A/DOC/SECDEF/22MAR23// 
REF/B/DOC/POTUS/09JUN23// 
REF/C/DOC/SECDEF/03AUG23// 
 
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. 
 
RMKS/1.  This NAVADMIN announces eligible Sailors may enroll or re- 
enroll in a Dependent Care Flexible Spending Account (DCFSA) during 
federal open season from 11 November - 9 December 2024, in line with 
references (a) through (c).  The DCFSA is a pre-tax account used to 
pay for eligible dependent care services, such as preschool, 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.  Active Component (AC) Service Members, to include 
Training and Administration of the Reserves (TAR) Sailors, and 
Reserve Component on Title 10 or Title 32 orders are eligible for 
enrollment in DCFSAs.  Additionally, AC and TAR Sailors may use 
DCFSAs for dependent care expenses that allow Sailors and, if 
married, spouses to work, look for work, or attend school full-time. 
For complete eligibility information, see 
https://finred.usalearning.gov/Benefits/DCFSA.
 
3.  Enrollment: 
    a.  Eligible Sailors may enroll in a DCFSA for the 2025 plan 
during the federal open season from mid-November through mid- 
December 2024.  Enrollment will be processed by the Federal Flexible 
Spending Account Program at https://www.fsafeds.gov/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 December. 
    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 Sailor's biweekly paycheck beginning the 15th of 
the month for the effective year of eligibility (e.g., 15 January 
2025) and deposited into their DCFSA. 
    d.  Funds are available in the Sailor's 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.  For the procedures to file a claim, see 
https://finred.usalearning.gov/assets/downloads/FINRED-DCFSAClaims101-G.pdf.
    e.  Contributions should be carefully planned not to 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 2026 for those that enrolled for the 2025 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 2026 for those enrolled in 
the 2025 federal plan year). 
    h.  Re-enrollment.  Eligible Sailors must re-enroll each year 
during the Federal Open Season to continue participation.  A 
Sailor's participation will NOT automatically carry over from year 
to year. 
 
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 families. 
 
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 family's financial 
budget and tax situation. 
    a.  Office of Financial Readiness DCFSA webpage: 
https://finred.usalearning.gov/Benefits/DCFSA.
    b.  Military OneSource: 
https://www.militaryonesource.mil/benefits/dependent-fsa/. 
    c.  FSAFEDS: https://www.fsafeds.gov/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 
https://www.militaryonesource.mil/financial-legal/taxes/miltax-military-tax-services/. 
 
6.  Released by Vice Admiral Richard J. Cheeseman, Jr., N1.// 
 
BT 
#0001 
NNNN 
CLASSIFICATION: UNCLASSIFIED//