Changing Your Contributions
Your payroll redirection can only be changed at the time of enrollment for each plan year. Exceptions to this rule are a change in your family status or your spouse's employment status. Examples are:
- Separation or divorce
- Death of a spouse or dependent
- Birth or adoption of a child
- Termination of employment, reduction in work hours, lay-off or leave of absence
The IRS also allows for a change in payroll redirection when the controlling factor for the change is initiated by an outside third party (not the employer or employee); there is a significant change in the employee's or spouse's group health coverage during the plan year; or the employer changes the employee's required group insurance premium contributions. Dependent Care payroll redirection can be changed if the employee changes daycare providers during the plan year.