FSA & DCFSA Update
- Tuesday, January 19th, 2021
Dear Health Flexible Spending Account (Health FSA) or Dependent Care Flexible Spending Account (DCFSA) Participant,
We have good news!
The Consolidated Appropriations Act, 2021 (the “Act”), signed into law on 12/27/2020, provides – among many other things – temporary relief for Health FSAs and DCFSAs.
In collaboration with HealthEquity, the company that administers our accounts, we have decided to adopt the optional provisions noted below. These provisions provide additional flexibility and minimize risk of forfeiting any unused health/waiver FSA or DCFSA contributions following the 2020 and 2021 plan years in light of the COVID-19 pandemic.
- Unlimited carryover - This provision allows unlimited carryover of ALL unused health/waiver FSA and DCFSA funds from plan year 2020 to 2021 and plan year 2021 to 2022, in addition to any newly elected contributions. You may still submit claims from the previous year during the period of January 1 – February 28. Then, any unused funds remaining will be accessible after the carryover process is complete in late March.
Note: You must re-enroll in a 2021 FSA and/or DCFSA with at least the annual minimum of $200 to have access to the unlimited carryover funds. If you did not make a 2021 election during Open Enrollment last fall, please respond to this e-mail with your desire to do so and we will assist with that process.
- DCFSA age limit increase – This provision allows employees enrolled in a DCFSA as of January 31, 2020 access to any unused funds from the previous year for dependent children up to the age of 14, previously age 13. If your dependent child aged off of the plan as s/he turned 13 during 2020, you may submit eligible dependent care expenses for reimbursement during the 2021 plan year.
- Election changes allowance – This provision allows election changes to health FSAs and DCFSAs without regard to change in status rules. That is, you may start/stop/increase/decrease your health FSA or DCFSA election amount at any time during 2021 without experiencing a qualifying event. You cannot stop or decrease your election if the funds have been used.
Please contact the Employee Wellness & Benefits Team at firstname.lastname@example.org or 270-745-5360 with any questions.