FSA News and Covid-19
This page is to provide updated news and guidance related to Covid-19 and FSA plans as it becomes available from the IRS
As of May 12, 2020, the Internal Revenue Service (IRS) issued new Flexible Spending Account (FSA) guidance for those affected by COVID-19. In response, the City has made the following changes to our current plan year Healthcare and Dependent Care Flexible Spending Accounts:
- If you’re actively enrolled in the Healthcare and/or Dependent Care FSA plans, your claim period is extended until December 31, 2020 (previously June 30, 2020). This means you’ll have more time to seek services and have them reimbursed.
- You still have the extra three months to submit for reimbursement (new deadline is March 31, 2021) for eligible expenses incurred between the start date of your plan (typically July 1, 2019) and December 31, 2020.
- Forfeiture still applies for all 2019-20 plan year Dependent Care FSA balances after December 31, 2020.
- Forfeiture of 2019-20 plan year Healthcare FSA balances below $50 and above $500 apply after December 31, 2020. Any remaining 2019-20 funds between $50 and $500 will rollover into your 2020-21 Healthcare FSA balance.
- The above will happen automatically, so there’s nothing you need to do.
- To review your FSA account balance, access your account at www.wageworks.com.
For the upcoming 2020/21 plan year, here are some things you should know:
- New FSA elections are allowed during the open enrollment period of May 15th through June 5th. Additional information can be found at www.portlandoregon.gov/openenrollment, including how to enroll.
- Any available 2020-21 plan year Healthcare FSA balance above $50 and below $550 on June 30, 2021 will carry over to the next plan year.
- You may want to wait to make your Dependent Care FSA election until your dependent care needs change, as daycare centers begin to open later this year. The IRS allows you to make prospective changes based on certain qualifying events.
- We do not anticipate any extensions for the 2020/21 plan year, so please elect accordingly.
The information above is based on early interpretations of the guidance issued recently and may be subject to change. We will continue to update this site as more information becomes available.