Mid-Year Changes: Healthcare FSA and Dependent Day Care Accounts
Due to the COVID-19 pandemic, the Group Insurance Board recently approved the following flexibility granted by the IRS for Healthcare FSAs and Dependent Day Care Accounts.
- Increase annual carryover limit to $1,000 (from $550) from plan year 2020 to plan year 2021
- Add personal protective equipment such as masks, hand sanitizer and sanitizing wipes as eligible expenses retroactive to January 1, 2021
Dependent Day Care Accounts
- Increase age limit for qualifying dependent child(ren) to under age 14 (for 2021)
- Add an annual carryover limit of up to $2,500 from plan year 2020 to plan year 2021
- Increase annual contribution limit to up to $10,500 for individuals or married couples filing jointly and $5,250 for married couples filing separately (for 2021)
- Allow a one-time opportunity from June 1- June 30, 2021 for current participants to increase their annual contribution, without a qualifying life event.
Healthcare and Dependent Day Care Account Carryover from 2020 to 2021: No action is necessary on your part to receive the additional healthcare carryover and/or the dependent day care account carryover. If you have funds that are eligible to be carried over, the funds will automatically be applied to your account mid-June.
Questions: For questions about your flexible spending account, contact Optum Financial/ConnectYourCare at 833-881-8158.
For questions on submitting a dependent care change form or your flexible spending account payroll deductions, contact your institution’s benefits office.
Source: UW System Human Resources