The university has extended the deadline for employees to use pre-tax funds set aside through their 2020 flexible spending accounts to Dec. 31, 2021. The extension is possible because of federal legislation passed late last year.
Normally, the deadline would be March 15. However, many people have been unable to fully utilize their FSA funds because of disruptions caused by COVID-19. Changes affect health care and dependent care FSAs.
Employees who have both a 2020 and 2021 Health Care FSA can still use their PayFlex cards. Eligible funds will first be applied to their 2020 balance. After 2020 funds are depleted (through Dec. 31, 2021), eligible funds will be deducted from their 2021 balance.
The maximum age of eligible employees’ children for whom dependent care funds can be used has changed from age 12 to age 13.
Reimbursement from the Dependent Care FSA is different from the Health Care FSA. Employees must complete forms online, by smartphone or by submitting a hard copy after the provider has been paid.
These changes also allow employees to adjust their contribution amounts for the current year. Employees can increase or decrease their FSA contributions to 2021 Dependent Care and Health Care FSAs without a corresponding change-in-status event.
Coverage decreases cannot be less than amounts for which they have already received reimbursement from the plan. This revision allows employees to increase or decrease annual elections only once during the plan year.
For details regarding items and services covered by FSAs, go to the PayFlex website or call 844-729-3539, TTY 711, from 7 a.m. to 7 p.m. Monday-Friday, and from 9 a.m. to 2 p.m. Saturday.