The U.S. Office of Personnel Management (OPM) issued guidance on the implementation of flexibilities related to the Federal Flexible Spending Account Program (FSAFEDS) under the Consolidated Appropriations Act (CAA) of 2021, Internal Revenue Service Notice 2021-15, and the American Rescue Plan Act (ARPA) of 2021.
OPM will allow flexibilities permitted under the CAA/ARPA, including allowing full carryover for health care flexible spending accounts (HCFSA) and limited expense HCFSAs; extending the grace period for dependent care flexible spending accounts (DCFSA); and permitting the use of DCFSAs to cover care for dependents through age 14 for 2020 and 2021.
In addition, OPM is working directly with FSAFEDS to offer a special enrollment/election period (SEP) from June 1, 2021 to June 30, 2021. The SEP will allow participants to increase or decrease their current elections for their DCFSA or HCFSA. The SEP will also allow those who did not re-enroll for 2021 during Open Season in Fall 2020 the opportunity to enroll in a DCFSA or HCFSA for 2021.
If you have any questions regarding this change, please contact FSAFEDS directly at 877-FSAFEDS (372-3337) or 866-353-8058 (TTY), Monday through Friday from 9 a.m. to 9 p.m. ET.
If you have any questions regarding this notice, please contact the Retirement and Benefits Advisory Service Branch via the Retirement and Benefits Portal.