Are you experiencing additional medical or childcare expenses this year due to COVID-19? Good news, the IRS has made some changes that could save you some money. You can open a flexible spending account which allows you to pay for eligible expenses with pre-tax dollars!
The Internal Revenue Service (IRS) recently issued updated guidelines for health care (HCFSA) and dependent care (DCFSA) flexible spending accounts, in response to the COVID-19 pandemic.
What you need to know:
- Mid-year election changes related to COVID-19 can be made for both health care FSA and dependent care FSA. If you have experienced an increase or decrease in medical or dependent care expenses this year, you can choose to make a mid-year change. This means you can open an account for the first time, or change your current elections. Decreases to current goal amounts can be no less than year-to-date reimbursements.
- Contributions limits for 2020 remained the same. $2,750 for medical FSA and $5000 for dependent care FSA.
- Complete the Flexible Spending Account request form and send to Human Resources if you wish to make a change.
- The grace period for unused health care FSA or dependent care FSA funds for 2019 is extended through December 31, 2020.
- Have questions? Contact Flores & Associates directly at 1-800-532-3327 or visit their website at www.flores247.com.
- Benefits Hotline is open to assist you at 667-6000 Monday-Friday 8 a.m. - 5 p.m.