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.
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.
To make a new election, or increase or decrease an existing election, please complete the following and return to the Pension Boards.