New FSA Relief Provisions Include a Carryover Feature for Plan Year 2020
Please be advised that under the Consolidated Appropriations Act signed into law at the end of 2020, participants in the Flexible Benefit Plan for UCC Ministries, also known as Flexible Spending Account or FSA, can carry over all unused amounts remaining in the FSA from the 2020 plan year to the 2021 plan year, and into the 2022 plan year.
This new FSA relief provision allows FSA participants to prospectively change their health care or dependent care FSA contributions during 2021 without regard to any change in status. Please refer to the following examples:
- Example 1: Rev. Jane has an unused FSA health care balance of $2,000 as of 2020. The IRS-determined maximum contribution is $2,750 for the 2021 plan year. Rev. Jane can carry over the 2020 FSA balance of $2,000 for a new total of $4,750 for 2021. If Rev. Jane only needs $1,500 in her FSA account for 2021, she can adjust her FSA account by $3,250 to obtain the $1,500 FSA balance. If Rev. Jane only uses $1,000 in 2021, she can carry over her balance of $500 into the 2022 plan year.
- Example 2: Rev. George has an unused dependent care FSA balance of $3,000 from 2020. The IRS-determined maximum contribution for dependent care is $5,000 for the 2021 plan year. Rev. George can carry over his $3,000 dependent care coverage from 2020 to 2021 and have a new balance of $8,000. If Rev. George only needs $2,000 for dependent care, he can adjust his account by $6,000 for the 2021 plan year. If Rev. George only uses $1,800 during 2021, he can carryover $200 into plan year 2022.
- Example 3: Mrs. Jones did not enroll in the 2021 FSA plan, but she has $500 balance from 2020. Mrs. Jones can carryover her $500 into the 2021 plan year without making a new election to participate in the FSA plan.
Please also note that FSA dependent care expenses are now eligible for children age 14 (rather than age 13 in the 2020 plan year).
For any questions about your FSA, please contact Highmark Blue Cross Blue Shield at 1.866.763.9471. To file a claim, visit www.highmarkbcbs.com, or download the HBS Spending App to file and view your account balance.
The Flexible Benefit Plan for UCC Ministries, also referred to as the Flexible Spending Account (FSA), is now administered by Highmark Blue Cross Blue Shield. New FSA debit cards, for use effective January 1, 2020, have been issued and mailed by Highmark to FSA Plan participants' home addresses. To learn more about the features of your 2020 FSA Plan, please visit www.highmarkbcbs-fsa.com.
Click here to learn how to use your FSA Debit Card or for more information go to Frequently Asked Questions.
Spending Account App which is now available for use click here to learn more.
Thank you for your continued partnership in the ministry of the United Church of Christ.
On May 14th, 2020 the (IRS) released Notices 2020-29 and 2020-33 which provide tax relief through increased flexibility for taxpayers with Flexible Spending Accounts, including Health and Dependent Care.
Here is a summary of the changes: Health and Dependent Care Elections
Participants may revoke an election, make a new election, or decrease or increase an existing election. Grace Period
Participants of the Health Care FSA will be able to incur eligible expenses through the last date of participation in the plan.
Participants of the Dependent Care FSA will have until March 15, 2021 to incur eligible expenses. Health FSA Carryover Increase.
The carryover amount for Health FSAs has increased from $500 to $550 to account for inflation.
To revoke an election, please complete the following application and return to the Pension Boards.https://www.pbucc.org/images/i/FSA_Plan_for_UCC_Ministries_Revocation_of_Benefit_Election_and_Compensation_Reduction_Agreement_Form.pdf
To make a new election, or increase or decrease an existing election, please complete the following and return to the Pension Boards.https://www.pbucc.org/images/pbucc/forms/FlexibleSpending/FSA_Election_Agreement_2021_f.pdf
Flexible Spending Accounts
With health care costs rising faster than both salaries and inflation, wouldn’t it be great to find a way to reduce your out-of-pocket costs? And wouldn’t it be great if you could pay for child-care expenses on a pre-tax basis? You can do both by participating in the Flexible Benefit Plan for UCC Ministries (generically referred to as a Flexible Spending Account or FSA).
Before you can take advantage of the FSA, your employer must be enrolled to participate in the Plan. CLICK HERE for more information on how your employer can set up an FSA Plan.
If your employer is already participating and you’re a new employee who wants to participate, please contact your employer for information and forms.For more information on the FSA Plan, contact the Pension Boards at 1.800.642.6543.