FSA Plan Changes for COVID Stimulus Bill:
In late December 2020, the federal government passed COVID stimulus legislation that included several relief provisions for Flexible Spending Account (FSA) participants. The provisions are intended to help employees access unused FSA balances who made decisions to participate and contribute to a health care or dependent care FSA prior to 2020 but have been unable to utilize eligible services or care during the COVID pandemic.
Below is an outline of these temporary changes:
- Unrestricted carryover through 2022 – Plans with the carryover feature on their 2020 and 2021 plans will be amended to allow carryover of ALL unused amount to the subsequent plan year for their health and dependent care FSAs. This temporary amendment applies to plan years ending in 2020 and 2021 – can carryover balances for 2020 into 2021, and 2021 into 2022.
- Allowances for Terminated Employees – Health care FSA participants who terminate their employment during the 2020 or 2021 plan year can spend down their unused balances for expenses incurred through the end of the plan year in which the termination occurred. This temporary amendment applies to plan years ending in 2020 and 2021.
- Election Changes without Qualifying Status Events – Employees can elect prospective changes in health care and dependent care FSAs for plan years ending in 2021 without a corresponding change in status event. Employees may not reduce their elections below the amount already reimbursed or contributed to date. This temporary amendment applies to plan year ending in 2021.
To make changes:
Change contribution amount (or stop contributions)
Enroll in FSA
Submit the form to Pierce County Benefits by routing or to pcbenefits@piercecountywa.gov..