More Flexible Spending Account Updates for 2021
Posted in Announcements
In March, I shared that recent legislation has provided increased flexibility for those participating in Flexible Spending Accounts (FSAs) in both 2020 and 2021. This includes an extended grace period and fewer restrictions for making mid-year changes to annual contributions.
I write today with further guidance on the recent FSA provisions in the Consolidated Appropriations Act (CAA), as well as new changes under the American Rescue Plan Act, which will provide Georgetown University FSA participants with even greater flexibility.
For those participating in a Dependent Care FSA in 2021, you may now contribute up to $10,500 for the current plan year. Given the new grace period, you will have through December 31, 2022, to incur expenses against your 2021 Dependent Care FSA balance. You may increase, decrease or stop your contributions through December 1, 2021. This new limit applies only to 2021.
For those increasing their 2021 Health Care or Dependent Care FSA election, you will now be able to use your new and existing account balance for reimbursements dating back to January 1, 2021 or your date of hire (whichever is later). For example, if you enrolled in a Health FSA with a $500 election at the beginning of the plan year, but then increased your election to $1,000 on April 15, once your account is updated with ConnectYourCare (our FSA administrator), you’ll be able to reimburse yourself for up to $1,000 in eligible expenses that you incurred in January. If you were hired after the beginning of the year, you will be able to submit claims back to the date of your initial enrollment. This is a change since our last update, and we believe this will provide an added layer of flexibility and financial security to many members of our community.
Again, FSA COVID changes should be requested through GMS. You can find step-by-step instructions here.
Associate Vice President, Benefits, Payroll and Wellness
Chief Benefits Officer