The Office of Personnel Management (OPM) yesterday announced a one-time special enrollment period for federal employees to adjust their current election choices for the Federal Flexible Spending Account Program (FSAFEDS).
During the special enrollment period, from June 1-30, employees may enroll for the first time and participants may increase or decrease their current elections.
Here are some other important plan flexibilities in response to recent legislation and guidance from the Internal Revenue Service:
- FSAFEDS is allowing unlimited carryover for re-enrolled HCFSA and LEX HCFSA participants for the 2020 and 2021 plan years. If employees do not re-enroll in 2021, they will not have access to 2020 carryover funds.
- FSAFEDS is extending the grace period for all Dependent Care FSA participants for the 2020 and 2021 plan years. The 2020 grace period is extended through Dec. 31, 2021, and the 2021 grace period is extended through Dec. 31, 2022.
- Dependent Care FSA participants with a qualifying dependent child who turned age 13 during the 2020 plan year may use any unused funds from 2020 for eligible expenses for that child until they turn age 14. To qualify, enrollment in a FSAFEDS DCFSA in the 2020 plan year is required.