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/B enefits/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.// BT #0001 NNNN CLASSIFICATION: UNCLASSIFIED//