Really concerned about losing $2-3k Dependent FSA. Need suggestions

[Anonymous]

OP again. It hurts to see deductions coming out every paycheck and no way to stop that. HR person (again) said nothing has been announced so no change can be made. Is there some article, something vaguely official that anyone has a link to? At least I can stop this bleed. Will lose what has already been taken out - which is about $1400.

[Anonymous]

Here’s one: https://www.washingtonpost.com/business/2020/05/19/with-summer-camps-canceled-irs-relaxes-rules-flexible-spending-accounts/

Your company needs to stop forcing you to continue deductions.

[Anonymous]

Anonymous wrote:OP. DH asked HR and they said there is absolutely nothing from IRS so no he is SOL.

That is untrue. They don’t know what they are talking about.

Signed, HR

[Anonymous]

Dependent care FSA election changes: During this time, many employees are required to work from home. Also, many daycare facilities may be closed temporarily. These events will impact the need for daycare funds, resulting in a need to change elections. The Section 125 election change rules provide significant flexibility for employees to change their dependent care FSA elections because of changes in work or daycare status.

https://www.jdsupra.com/legalnews/coronavirus-impact-on-health-benefits-a-36122/

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP. DH asked HR and they said there is absolutely nothing from IRS so no he is SOL.

That is untrue. They don’t know what they are talking about.

Signed, HR

I should add thaat my employer implemented this and we were able to stop dependent care deductions through DH’s employer. So to confirm, it’s a thing.

[Anonymous]

I stopped deductions after DH laid off. They did not ask for documentation this happened.

[Anonymous]

The IRS also just issued new rules a week or so ago allowing employers to elect to extend the grace periods for using the funds.

[Anonymous]

Anonymous wrote:The IRS also just issued new rules a week or so ago allowing employers to elect to extend the grace periods for using the funds.

NP. Link? I can't find it. My employer finally allowed stoppage of deductions but we have $2k gone and no way to use it. So an extension to next year will help.

[Anonymous]

My HR is allowing us to stop but has decided NOT to allow a grace period even though IRS is now giving that flexibility. Horrible move.

[Anonymous]

Anonymous wrote:My HR is allowing us to stop but has decided NOT to allow a grace period even though IRS is now giving that flexibility. Horrible move.

Are they allowed to do that?

[Anonymous]

Ludicrous that FSAs exist at all. They’re just a tax break.

Cut a check to parents with dependents via a tax credit, and lose all the stupid and pointless paperwork.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My HR is allowing us to stop but has decided NOT to allow a grace period even though IRS is now giving that flexibility. Horrible move.

Are they allowed to do that?

FSAs exist to give HR people and insurance companies and FSA servicers profit at our expense in time and money.