FSA update – Changes allowed during limited period
Postal Service employees who participate in flexible spending accounts (FSAs) can make changes during a 60-day period that began July 1 and ends Aug. 29.
FSA Feds, the organization that administers FSAs, is allowing changes due to the coronavirus pandemic, although participants don’t need to be directly affected by the coronavirus to make changes.
Additionally, participants don’t need to experience a qualifying life event — such as a marriage, divorce or birth — to make changes, and they aren’t required to provide documentation.
During the 60-day period, all participants who have enrolled in a 2020 health care flexible spending account (HCFSA), limited expense health care flexible spending account (LEX HCFSA) or dependent care flexible spending account (DCFSA) will be allowed to make a one-time change — an increase or a decrease — in the amount of their annual election in each FSA account in which they are enrolled.
Under IRS guidance, the election change is effective prospectively, which means it will take effect on the first pay period after approval by FSA Feds. Accordingly, participants cannot receive a refund of allotments from pay they have already made to their FSA accounts year-to-date.
In addition, participants cannot decrease their election below the amount already allotted to the FSA account or the amount already reimbursed for eligible expenses, whichever is greater.
Employees who have questions or would like to make changes should go to www.fsafeds.com or call 877-372-3337.