ALCOAST 082/25 - FEB 2025 DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT (DCFSA) SPECIAL ENROLLMENT PERIOD FOR MILITARY PERSONNEL

R 241610Z FEB 25 MID120001755560U
FM COMDT COGARD WASHINGTON DC
TO ALCOAST
BT
UNCLAS
ALCOAST 082/25
SSIC 7220
SUBJ: DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT (DCFSA) SPECIAL
ENROLLMENT PERIOD FOR MILITARY PERSONNEL
1. This ALCOAST announces the opportunity for eligible Coast Guard
members to enroll in a Dependent Care Flexible Spending Accounts
(DCFSA). DCFSA is a pre-tax account used to pay for eligible
dependent care services, such as pre-school, day camp, before or
after-school programs, and child (for a dependent who is under age
13) or adult daycare. Contributions are deducted from pay, pre-tax,
and then deposited into a DCFSA. This reduces a member's taxable
income.
2. Eligibility. U.S. Coast Guard Active Duty and Reserve members,
including Reserve Component Managers, when performing active duty
for more than 180 days are eligible for enrollment in a DCFSA if
they have eligible dependent care expenses that allow both the
Service Member and spouse (if applicable) to work, look for work, or
attend school full-time. Eligibility information may also be found
(listed under Eligibility of Frequently Asked Questions) at:
(Copy and Paste URL Below into Browser)

https://finred.usalearning.gov/Benefits/DCFSA/FAQ

3. Enrollment:
    a. Eligible members may enroll in a DCFSA for the 2025 plan
during the special enrollment period from 03-31 March 2025.
Enrollment will be processed by the Federal Flexible Spending
Account Program at:
(Copy and Paste URL Below into Browser)

https://www.fsafeds.gov/

Specific instructions on how to enroll during the Special
Enrollment Period can be found at:
(Copy and Paste URL Below into Browser)

https://finred.usalearning.gov/Benefits/DCFSA

    b. 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). If the
member's spouse has less than $5,000 in yearly earnings, the
contribution is limited to the amount of the member's spouse's
yearly earnings. Complete spousal considerations information can be
found (listed under Spousal Consideration of Frequently Asked
Questions) at:
(Copy and Paste URL Below into Browser)

https://finred.usalearning.gov/Benefits/DCFSA/FAQ

    c. A DCFSA typically operates on a calendar year basis, starting
01 January and ending 31 December. However, during the special
enrollment period, all eligible expenses must be incurred between
the day after enrollment through 31 December. If a member enrolls on
03 March, they can incur expenses between 04 March - 31 December.
If the member enrolls on 31 March, they can incur expenses from
01 April - 31 December.
    d. Eligible Service Members may also enroll at any time in a
DCFSA following a qualifying life event (QLE) such as birth or
adoption of a child, change in legal marital status, deployment, or
a permanent change of station. More information about QLE can be
found at:
(Copy and Paste URL Below into Browser)

https://www.fsafeds.gov/public/pdf/FSAFEDS-QLE-Quick-Reference-
Guide%20FINAL-s.pdf

    e. Upon enrollment, the specified amount of funds will be
withheld from the Service Members semi-monthly paycheck and
deposited into their DCFSA. Each month, half of the deduction will
occur at mid-month, and half at the end of the month. The deposit to
the DCFSA will be made available the following month after payroll
deduction.
    f. During the special enrollment period, members who enroll
between 03 March and approximately 25 March will see their
deduction(s) begin with mid-month April payroll and the funds
available in the DCFSA approximately 01 May. Members who enroll
between 25 March and 31 March may not see their deduction(s) begin
until mid-month May payroll and the funds available in the DCFSA
approximately 01 June.
    g. DCFSA funds can be withdrawn to directly pay dependent care
providers or to reimburse dependent care expenses paid out of
pocket.
    h. Contributions should be carefully planned to not exceed the
total amount of qualified expenses anticipated to be incurred
during the year.
    i. There is a grace period through 15 March of the following
year (e.g., 15 March 2026 for those that enrolled for the 2025 plan
year) to incur expenses. Participants have until 30 April of the
following year to submit a claim for these expenses.
    j. 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).
    k. Re-enrollment. Eligible Service Members must re-enroll each
year during the Federal Open Season to continue participation in the
DCFSA benefit.
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. DCFSA funds do not carry over into the next year, so you will
lose any money that is not used and claimed on eligible dependent
care expenses.
    c. Understand your tax benefits. Free online tax filing and
one-on-one help from a Money Coach and/or Certified Tax Coach are
available to Service Members and their families from CG SUPRT.
5. DCFSA and Coast Guard Resources. Free assistance is available to
help members make the right decision, provide enrollment
information, and understand how the DCFSA affects both their
families' financial budget and tax situation.
    a. Office of Financial Readiness DCFSA webpage:
(Copy and Paste URL Below into Browser)

https://finred.usalearning.gov/Benefits/DCFSA

    b. FSAFEDS:
(Copy and Paste URL Below into Browser)

https://www.fsafeds.gov/explore/usmdcfsa

    c. Coast Guard Personal Financial Management Program (PFMP),
local contact list can be found via the following webpage:
(Copy and Paste URL Below into Browser)

https://www.dcms.uscg.mil/Our-Organization/Assistant-Commandant-for-
Human-Resources-CG-1/Health-Safety-and-Work-Life-CG-11/Office-of-
Work-Life-CG-111/Personal-Financial-Management-Program-PFMP/

    d. For Tax consultation: CG SUPRT: 1-855-CG SUPRT (247-8778) or
visit:
(Copy and Paste URL Below into Browser)

https://assets.mysecureadvantage.com/cgsuprt/cgsuprt-financial-
wellness-program-overview.pdf

6. CAPT Ryan P. Matson, Acting Assistant Commandant for Military
Personnel (CG-1M), sends.
7. Internet release is authorized.