Dependent Care Flexible Spending Account (DCFSA)
Employees whose childcare center is closed, or who do not need child/dependent care at this time because they are working from home, are able to decrease or suspend their Dependent Care Flexible Spending Account as these meet the criteria for a qualifying event.
If you estimate that you will not incur enough eligible Dependent Day Care claims by December 31, 2020 your options are:
1. Do nothing.
- Your annual election amount will remain the same
- Eligible expenses incurred on or after your effective date through March 15, 2021 are eligible for reimbursement from your 2020 Dependent Care FSA.
2. Suspend your annual election amount
- Your contributions will stop for the remaining pay periods of the year as of the effective date of the change. Please keep in mind if you opt to cease participation in the plan, the time period for the reimbursable expenses would be limited from January 1, 2020 through the effective date of your change. The recommendation would be to reduce your contribution to whatever amount you have contributed year-to-date. This would allow you to use contributed funds for the duration of the plan year with no break in coverage.
3. Decrease your annual election amount to what you estimate your Dependent Care expenses will be
- You can decrease your annual election to the amount of your year to date contributions.
Grace Period and Claim Submission for Dependent Care (Child Care) FSAs:
The 2020 plan has the grace period to incur claims against the 2020 balance through March 15, 2021. The runoff period to submit claims incurred during the plan year January 1 2020 – March 15, 2020 is March 31, 2021.
Extended Claim Submission Period for Health Care FSAs:
The 2019 Health Care FSA deadline to submit expenses has be extended to December 31, 2020.
