Important updates for flexible spending accounts
The COVID-19 relief package that was recently passed by Congress and signed by President Trump on Sunday, Dec. 27, includes some important updates to FSA plans (health and dependent care) for both the 2020 and 2021 plan years.
The AU Benefits team continues to research the impacts of this legislation to determine what it means for plan participants. However, there are some important provisions that can already be shared with plan participants for either or both plan years. Specifically, the legislation would provide as follows:
• Any amounts that are unused in 2020 can carry over to 2021 for both the health and dependent care FSAs.
• Effects on carryover provisions into 2022 will be addressed soon.
• Dependent care flexible spending accounts may reimburse expenses for dependents who reach age 14 during 2020.
AU Benefits will share additional information as it becomes available. For questions, email email@example.com.
Submitted by: Patrick Johnston