This week, OPM provided NTEU with information on new FSA flexibilities permitted under the Consolidated Appropriations Act of 2021, Internal Revenue Service (IRS) Notice 2021-15 and the American Rescue Plan Act of 2021. These flexibilities include allowing full carryover for a health care flexible spending account (HCFSA) and Limited Expense FSA (LEX FSA); extending the grace period for a dependent care flexible spending account (DCFSA); and permitting care for dependents through age 14 for 2020 and 2021 under a DCFSA.
In addition, OPM is working with the FSAFEDS contractor, Health Equity, to offer a Special Enrollment/Election Period (SEP) in the near future. This SEP will allow participants to increase or decrease their current elections for their DCFSA and/or their HCFSA. The SEP will also allow those who did not re-enroll for 2021 during Open Season in the fall, the opportunity to enroll in a DCFSA and/or HCFSA for 2021.
Finally, OPM will allow DCFSA participants to increase their election during the Special Election Period to the new IRS maximum of $10,500 for 2021.
OPM is expected to provide additional guidance on these flexibilities and agencies are just now receiving this information, so it may take some time for new forms to be available. I will keep you updated as new information is available.