How to Communicate the 2026 Dependent Care FSA Increase to Employees

The Dependent Care FSA limit rose from $5,000 to $7,500 for 2026 — a 50% increase, and the first change to this limit since 1986. Most employees will not know this happened unless you tell them directly. Generic enrollment boilerplate that just says “Dependent Care FSA” without calling out the change will get skimmed past.

Why this is worth a dedicated push

A benefit employees don't know changed is a benefit they under-utilize — which is a missed opportunity on both sides: lower perceived benefits value for employees, and lower FICA savings for you as the increase in participation directly reduces your payroll tax bill.

What to actually say

A short, specific announcement outperforms a long one. Cover:

• The old and new numbers, side by side — “up from $5,000 to $7,500” is more concrete than “increased contribution limits.”
• What it means in practice — roughly how much additional pre-tax care spending this covers for a typical family.
• The deadline to elect or change an existing election for the 2026 plan year.
• A link to your plan's specific enrollment portal, not a generic benefits page.

Where to put it

Don't rely solely on the benefits guide PDF. Reinforce the message through whatever channel your employees actually check — a short all-hands mention, a Slack/Teams post timed to open enrollment, or a one-line callout in a broader benefits email rather than burying it in a paragraph.

Timing relative to open enrollment

Send the announcement before enrollment opens, not during — employees who are deciding their election need this information at decision time, not after they've already submitted a choice based on the old limit.

See the 2026 plan amendment checklist for the administrative steps that need to happen before this communication goes out.