Complete Benefit Solutions

Health and Dependent FSA legislation outlined in the new relief package. This portion of the bill has received Presidential sign off. This bill gives employers the option to:

• Amend their Health FSA and Dependent Care FSA plans to allow for a carryover of any unused funds from 2020 to 2021 and from 2021 to 2022.

• Create more expansive grace periods for Health FSA and Dependent Care FSA for plan years ending in 2020 or 2021 to 12 months after the end the plan year.

• Health FSA and Dependent Care FSAs can permit employees who ceased participation during the 2020 or 2021 plan year to spend down their unused balances for expenses incurred through the end of the plan year in which the termination occurred.

• Employers can raise the last eligible age for children’s dependent care by one year for the 2020 plan year.

• Amend Health FSA and Dependent Care FSA plans to permit a change in election amounts for plan year ending in 2021, without a corresponding change in status event.

Please note, these changes are not mandatory, but allow you as the employer the option to adopt them.