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FSAFEDS Special Enrollment Period
June 1, 2021 – June 30, 2021 |
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In response to recent legislation and IRS guidance, OPM is offering a Special Enrollment Period for health care and dependent care Flexible Spending Accounts. |
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From June 1, 2021 through June 30, 2021, employees will be allowed to enroll or change 2021 FSAFED elections. In order to take advantage of these flexibilities, employees must be active participants in the applicable spending account during the applicable carryover year.
Please see below a high-level overview of the new flexibilities for the 2020 and 2021 plan years to Health Care Flexible Spending Accounts (HCFSAs), Limited Expense Health Care Flexible Spending Accounts (LEX HCFSAs) and Dependent Care Flexible Spending Accounts (DCFSAs). For more detailed information and sample scenarios, review the FSAFEDS Quick Reference Guide.
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Time Limited FSAFEDS Flexibilities
Unlimited Carryover: Current Healthcare Flexible Spending Account (HCFSA) and Limited Expense Healthcare Flexible Spending Account (LEX HCFSA) participants may carry over unused contributions from the 2020 plan year to the 2021 plan year, and then again from the 2021 plan year to the 2022 plan year. The annual contribution limits for these accounts remains the same for the 2021 plan year. You do not need to make a change to enrollment to carry over unused contributions.
Extended Grace Period: The grace period to incur Dependent Care FSA (DCFSA) eligible expenses has been extended to December 31 for the 2020 and 2021 plan years. Participants who had remaining DCFSA funds at the end of 2020 will be allowed to use these funds for eligible expenses incurred through December 31, 2021, if they are participating in the DCFSA during the 2021 plan year. Participants who have DCFSA funds remaining at the end of the 2021 plan year will be allowed to use the remaining funds for eligible expenses incurred through December 31, 2022, if they participate in the DCFSA during the 2022 plan year. You do not need to make a change to your enrollment to carry over unused contributions.
Increased Contribution Limit for the 2021 Plan Year Only: The DCFSA annual contribution limit for the 2021 plan year has increased to $10,500 for those filing taxes as single or married and filing jointly, and $5,250 for those who are married but filing taxes separately.
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How to Enroll or Change Elections:
To enroll or change 2021 FSAFED elections, employees should go to www.fsafeds.com and select “2021 Special Enrollment Period” from the “Enroll in Plan” menu located at the top of the home page.
Current participants can increase or decrease elections by choosing the “2021 Special Enrollment Period - Increase/Decrease” event type.
New participants (employees who want to enroll for the first time) should choose the “2021 Special Enrollment Period - New Account” event type. Once the employee hits the “I ACCEPT” button, they will be directed to the Qualifying Life Event module on the website to complete the request.
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