Recently, the IRS made some temporary changes to
Flexible Spending Accounts (FSA) rules. This was done to address unanticipated changes in expenses because of the 2019 Novel Coronavirus (COVID-19) pandemic.
Notice 2020-29 (PDF) provides greater flexibility for taxpayers by:
- extending claims periods for taxpayers to apply unused amounts remaining in a health FSA or dependent care assistance program for expenses incurred for those same qualified benefits through December 31, 2020.
- expanding the ability of taxpayers to make mid-year elections for health coverage, health FSAs, and dependent care assistance programs, allowing them to respond to changes in needs as a result of the COVID-19 pandemic.
- applying earlier relief for high deductible health plans to cover expenses related to COVID-19, and a temporary exemption for telehealth services retroactively to January 1, 2020.
Notice 2020-33 (PDF) responds to Executive Order 13877, which directs the Secretary of the Treasury to "issue guidance to increase the amount of funds that can carry over without penalty at the end of the year for flexible spending arrangements." The notice increases the limit for unused health FSA carryover amounts from $500, to a maximum of $550, as adjusted annually for inflation.
If any employee wishes to cancel, or change their FSA goal, you must contact your employer to do so.
Frontier Employees: Call Empyrean at 1 855 FTR-2887
AT&T Employees: Call the Benefits Center at 1 877 722-0020
If you have any questions, please contact Secretary-Treasurer Louise Gibson at email@example.com or 203 230-5703.