February 24, 2021
Flexible spending account update from State Employee Health Plan
The State Employee Health Plan has released updated provisions for flexible spending accounts, or FSAs, according to the Coronavirus Relief Act.
The health plan has carried over balances from plan year 2020 to this year for Health Care and Limited Purpose FSAs, as well as Dependent Care FSAs. This prevents those balances from being forfeited and allows employees to use those funds.
The health plan has allowed for employees to modify contributions to FSAs for 2021 to account for the carryover. As employees likely planned their contributions to match their expenses for 2021, employees may want to adjust their contributions to account for the carryover balance.
Questions regarding this update may be directed to email@example.com.