Reply to OPM Fix for 2020 Dependent Care Accounts and More

Forum Index » Money and Finances

Reply to "OPM Fix for 2020 Dependent Care Accounts and More"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]I recall some posters feared losing Dependent Care account funds from 2020 because they didn't spend as much on childcare as expected.  I think the below notice should take care of that.

We are excited to announce the U.S. Office of Personnel Management (OPM) has reviewed and made decisions on the implementation of flexibilities related to the Federal Flexible Spending Account Program (FSAFEDS) under the Consolidated Appropriations Act (CAA), 2021, Internal Revenue Service (IRS) Notice 2021-15 and the American Rescue Plan Act (ARPA or Act) of 2021.

OPM approved the following flexibilities, which are already in place:
 
Full carryover for a health care flexible spending account (HCFSA) and Limited Expense FSA (LEX FSA) if you re-enroll in a 2021 HCFSA or LEXFSA
[b]Extension of the grace period for a dependent care flexible spending account (DCFSA) for plan years 2020 and 2021[/b]
Permitting reimbursement of dependent care expenses for dependents through age 14 for 2020 and 2021 under a DCFSA
Allowing DCFSA participants to increase their election up to $10,500 for 2021 ($10,500 for single or married filing jointly and $5,250 for married filing separately). This can be done now by experiencing and submitting a Qualifying Event, including an increase in dependent care expenses. Go to www.FSAFEDS.com, click “Enroll in a Plan” on the home page, select Qualifying Life Event and follow the instructions.
Eligibility of face masks and hand sanitizing wipes (with a minimum of 60% alcohol)
 
OPM is also planning to offer a Special Enrollment Period (SEP) soon. The SEP will allow participants to increase or decrease their current elections for their DCFSA and/or their HCFSA. In addition, the SEP will allow those who did not enroll or re-enroll for 2021 during Open Season in the Fall, the opportunity to enroll in a DCFSA and/or HCFSA for 2021, and submit qualified medical expenses after the enrollment effective date. For those who were enrolled in 2020, but had not re-enrolled during Fall Open Season, this will also provide access to any 2020 carryover funds.

FSAFEDS will communicate details regarding the SEP soon. Stay tune[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics