Changes in store for flexible spending accounts
Due to the Consolidated Appropriations Act recently passed by Congress, Asante has made some changes for flexible spending accounts for 2021.
If you had an unused balance in a full-purpose, limited-purpose or dependent care FSA at the end of 2020, the balance will not be forfeited but instead will be carried over to 2021. These funds can be used to reimburse you for qualifying expenses incurred in 2021. The carryover amount is in addition to any amount that may have been elected for 2021, and does not count toward the maximum contribution for 2021.
For example, if you had an unused balance of $100 in a full-purpose FSA at the end of 2020 and elected to contribute $1,000 for the full-purpose FSA in 2021, that FSA will pay up to $1,100 in benefits for qualifying expenses that are incurred in 2021.
An exception would be if you had an unused balance in a full-purpose FSA at the end of 2020 and enrolled in the Asante Savings Health Plan for 2021. For that situation, any unused balance would be carried over into a limited-purpose FSA (to be used only for dental or vision expenses), and would be in addition to anything that may have been elected for a limited-purpose FSA for 2021. This is to maintain eligibility for the health savings account, or HSA.
In addition, Asante will offer a mid-year opportunity to enroll in or change 2021 FSA elections. This opportunity, which takes effect in June, means:
- You are not required to have a qualifying life event to make or revise an election or to give a reason for the change.
- Even if you did not participate in the most recent Open Enrollment period, you may elect to participate in an FSA from July 1 to Dec. 31, 2021.
- During this period, you may increase your elections to any of the FSAs, up to the maximum contribution limits. Or you may choose to decrease or revoke your elections to any of the FSAs, limited to the amount for which you already have been reimbursed.
Look for more information about this midyear opportunity, including how to request the change, in an upcoming issue of Asante News.
If you have any questions, please email the Asante Benefits department or call (541) 789-4551. You can also submit a case in the Ask HR section of myHR.
If you need answers for a personal work matter, please contact the author or department directly.