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Flexible Spending Account (FSA)
Provisions for Calendar Year 2021

Provisions expire December 31, 2021

Health Care and Dependent Care Flexible Spending Provisions

On December 27, 2020 the President signed the COVID-19 Relief Bill passed by Congress, allowing UNI the opportunity to temporarily amend our flexible spending plans for the 2021 calendar year. The following two provisions impact Health Care FSA and Dependent Care FSA and will expire December 31, 2021.

Provision for 2020 Participants:

The deadline for individuals with remaining 2020 unused FSA funds has been extended to December 31, 2021, rather than March 15, 2021. This extension also allows 2020 participants to use their 2020 unused funds for 2021 claims. This provision expires December 31, 2021.

Provision for all Benefit Eligible Employees:

Between January 1 - December 31, 2021 you may elect, increase, decrease, or waive 2021 FSA contributions without a qualifying life event. Limitations do exist, please see below. This provision expires December 31, 2021.

IRS Significantly Increases 2021 Dependent Care FSA Maximum

Due to the American Rescue Plan Act of 2021 the bill states that the dependent care FSA maximum has been increased to $10,500 for 2021.

What you can do in 2021:

  • You can decrease your 2021 election amount based on what you have left in your 2020 FSA.
  • You can waive your 2021 plan.
  • As situations arise, you can elect or increase your 2021 election amount at any time prior to when the December 2021 payroll is run.
  • If you are currently not enrolled in a Health Care FSA or Dependent Care FSA plan, you can enroll at any time prior to when December 2021 payroll is run.
  • Make any changes to your election prior to when December 2021 payroll is run.
  • Submit for Dependent Care FSA claims starting back to the coverage start date of your plan, as early back as January 1, 2021. Please see dependent care FSA examples below.

What you cannot do:

  • You cannot decrease your election below the amount you have already contributed, or the amount you have already been reimbursed for.
  • You cannot waive the plan and continue to claim expenses that occurred after the date you waived.
  • You cannot make any retroactive changes to already processed payroll contributions.

Examples:

Employee 1 has $1,000 leftover in their 2020 health care FSA account through ASIFlex. During Open Enrollment they elected another $1,000 for the 2021 year. Because there is still a $1,000 amount leftover, they have decided to waive their health care FSA plan for 2021 in order to ensure that they use their 2020 health care funds. Employee 1 can always re-elect health care FSA before the 2021 December payroll is run.

Employee 2 has $500 remaining in their 2020 health care FSA account through ASIFlex. They have already elected the maximum amount of $2,750 health care FSA for 2021. Employee 2 decided to decrease their 2021 health care election to $2,250.

Employee 3 decided during the Open Enrollment period that they weren't going to participate in a FSA for 2021. Since then they have found out that they have to have a medical procedure done. They can now elect up to $2,750 (the IRS maximum for a health care FSA) for the 2021 plan year.

Employee 4 experienced a closing with their 2020 summer childcare for their school aged child and has unused 2020 dependent care FSA funds. They can now use their 2020 funds to pay for 2021 summer childcare.

Employee 5 enrolled in Dependent Care FSA during Open Enrollment and has since increased their annual election to $10,500. They can submit for dependent care expenses that occurred on or after January 1, 2021.

Employee 6 newly enrolled in Dependent Care FSA on April 1, 2021, and has decided to increase their annual election to $10,500. They can submit for dependent care expenses that occurred on or after April 1.

Benefit Enrollment

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