Population: All Dependent Care FSA participants Send Date: June 15th (after Alight programming is updated)

Subject: Updates to your Dependent Care FSA Limits for 2021

You have an opportunity to increase the amount of your pre-tax salary contributions to your Dependent Care Flexible Spending Account (DCFSA) and use those amounts to reimburse dependent care expenses you incur in 2021. The American Rescue Plan Act (ARPA), signed into law earlier this year, raised the 2021 DCFSA pre-tax contribution limit to $10,500 (or $5,250 for married individuals filing separately). Previously, the limit was $5,000 (or $2,500 for married individuals filing separately). Because our records show that you are a current participant in the DCFSA for 2021, we wanted to let you know that you can increase your annual contribution amount up to this higher limit. To increase your DCFSA, please contact the AT&T Benefits Center at 877-722-0020, select ‘Spending Accounts’ from the call prompts and inform the agent that you wish to increase your DCFSA contribution limit. The Benefits Center is open Monday through Friday, 7am - 7pm CT. IMPORTANT NOTE: Unlike 2020, there is no expectation that any unused amounts from your 2021 DCFSAwill be available for claims incurred in 2022. This means that if you don’t incur enough dependent care eligible expenses in 2021, you will forfeit whatever remains in your DCFSA after eligible claims are processed. If you decide to increase your 2021 deferral amount, it is important that you estimate how much money to contribute to your DCFSA carefully. If you don’t use all the funds you’ve set aside by December 31, 2021, and submit a claim for reimbursement by March 31, 2022, you will forfeit any remaining balance in your account.