Like an FSA, you must use all of your DCAP funds by the end of your plan year. Remaining funds are forfeited, according to IRS regulations. ConnectYourCare’s DCAP calculator helps account holders estimate dependent care expenses in order contribute the optimal amount.
According to the IRS, you may contribute up to $5,000 per year if you are married and filing a joint return, or if you are a single parent. If you are married and filing separately, you may contribute up to $2,500 per year per parent.
Unlike a Health Care FSA, you may only receive reimbursement from your DCAP account equal to the amount you have actually deposited.