Important Flexible Spending Account Changes

The most recent COVID-19 Relief Bill passed in December 2020 has made it easier for you to use your health and dependent care Flexible Spending Accounts (FSA).  The Bill allowed some temporary changes to both the Health FSA and the Dependent Care FSA.  The changes are listed below and are temporary at this time.  Please review this information carefully.  Instructions are provided below if you would like to change your election or enroll in a flexible spending account.  No action is required to take advantage of the other plan changes.

PLANFSA FEATUREPREVIOUS RULENEW RULETIMELINEWHAT YOU NEED TO DO
Health & Dependent Care FSAUnrestricted  carryover of unused funds  (New)Currently there is a $550 limit maximum to carry over your health FSA.  The dependent care FSA does not allow any carry over currently.Under the new Bill you may carry over all unused funds in your 2020 health and/or dependent care FSA money to your 2021 FSA. As well you may carry over all unused from 2021 to 2022.This feature is currently only authorized for the 2020 plan year and the 2021 plan year.Nothing. Any unused funds you currently have in your 2020 FSA’s will be carried over to your 2021 FSA’s.  If you did not enroll in an FSA for 2021, one will be created for you to hold your rollover money.  One Caution – if you are enrolled in the Panther plan (High Deductible Health Plan -HDHP) you may only use the Health FSA rollover money to pay for dental or vision expenses.
Health & Dependent Care FSAElection changes without an IRS Change in Status Event (This was also offered in 2020)This was put into place in the spring of 2020 and is being carried over to 2021.  This allows you to start, stop or change your deferral deductions throughout the year without an IRS Change in Status Event.Same as the previous rule – this is being continued in 2021.This feature is currently only authorized for the 2021 plan year and will end on 12/31/2021.If you want to enroll in a health or dependent care FSA you may do so without an IRS Change in Status Event.  You may also change your deferral amounts at any time without an IRS Change in Status Event.                                                      How do I make the change?  You will need to email the Benefits Shared Services team (Benefits@gmhec.org)  to adjust your account.
Dependent Care FSAIncreased Eligibility Age                (New)The age for eligible dependents in a dependent care FSA is currently up to age 13.The age for dependent care reimbursement is up to age 14 for the 2020 year only.  This allows you to use your 2020 rollover for dependents age 13 in 2021.This feature is currently only authorized for the 2020 plan year.Nothing.  If you had a dependent care roll-over to 2021 and your child turned 13 in 2021 you can use those funds for dependent care expenses.

How to request to enroll, change or cancel your Health and Dependent Care FSA in 2021.

1. Send an email to Benefits@GMHEC.org  to request your change.

2. In your email you must include the following information.

  • Your Oracle ID number
  • Name
  • College
  • Which FSA you would like to enroll, cancel, or change; Health or Dependent Care
  • Type of Change (enroll, cancel or change)
  • The annual amount you would like to defer for the entire calendar year (remember there are annual limits, $5,000 for a Dependent Care FSA and $2,750 for a Health FSA)

3. Changes must be made the Friday before the next pay date to be effective in that pay period.

  • For new enrollees, eligible reimbursement requests dates will be as of the date the request was received by the  Benefits Shared Services Team