FSAFeds has provided further information on new FSA flexibilities permitted during the pandemic under the Consolidated Appropriations Act of 2021, Internal Revenue Service (IRS) Notice 2021-15 and the American Rescue Plan Act of 2021. Two big takeaways:
- As the union previously reported, there will be a new Special Enrollment Period (SEP) from June 2, 2021 to June 30, 2021, during which participants may increase or decrease their current 2021 elections, or even enroll in FSAFeds for the first time for 2021. For those who may not know, FSAFeds allows employees to save considerable money by depositing pre-tax dollars from each paycheck into a flexible spending account and then using the funds for qualified dependent care expenses and/or out of pocket medical expenses (such as co-pays, prescription drug costs, eye care, dental care, etc.).
- FSAFeds participants may rollover all unused funds from 2020 to 2021, and from 2021 to 2022. The 2020 grace period for the use of funds is extended through December 31, 2021, and the 2021 grace period for the use of funds is extended through December 31, 2022.
More information is available directly from FSAFeds here: CAA Quick Reference Guide.