[Chemistry_faculty] DepCare - FSA Plan: 2024 Pre-Taxable Contributions Change for highly-compensated employees

[Barbara Outzen-Hill]

TO:  Chemistry Faculty & Staff

FYI.

March 4, 2024

To:

	

Department Benefits Representatives

From:

	

Central HR Benefits Office on behalf of the UC Office of the President

Re:

	

*DepCare - FSA Plan: 2024 Pre-Taxable Contributions Change for 
highly-compensated employees ***

**

UC Office of the President was informed of certain participants in the 
Dependent Care FSA (DepCare) who will receive communications this week 
regarding contributions to the plan.

DepCare Flexible Spending Account (FSA) plans are highly regulated by 
the Internal Revenue Service (IRS) to ensure the tax benefits offered 
are equitable to all participants. This includes a requirement for 
non-discrimination testing to confirm the DepCare FSA plan does not 
favor highly-compensated employees (defined by the IRS as those earning 
$150,000 or more in 2023) and is providing comparable benefits to all 
participants.

**

*2024 plan year contribution adjustments*

Based on recent non-discrimination testing results for the University of 
California’s plan, highly-compensated employees must have the 2024 
DepCare FSA benefit capped at an annual maximum of $3,000 in order to 
comply with IRS regulations.  If necessary, DepCare deductions for 
highly-compensated employees will be reduced beginning with the March 
13, 2024 paycheck for bi-weekly paid employees and the April 1, 2024 
paycheck for monthly-paid employees.

*Communications*

Targeted emails will be sent to affected employees.  Additionally, 
UCPath will send a copy of the letter via U.S. mail.

Affected employees may contact the UCPath Center with questions. Please 
use the _UCPath phone system and case initiation paths 
<https://hr.ucr.edu/document/ucpath-notice-depcare-reminder-2024>_to 
help ensure a timely response to inquiries.
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