PORTSMOUTH, Va. (WAVY) — Good news for those of you who thought you lost money on your Flexible Spending Accounts in 2020.
As part of the COVID-19 relief bill, Congress decided to allow any money remaining in an FSA to roll over from 2020 to 2021, and from 2021 to 2022.
FSAs are those workplace plans you contribute to during the year to pay for medical or dependent care expenses. Typically, what you don’t use by the end of the — year you lose.
Employers must decide whether to allow the carryovers but, Bill Sweetnam, legislative director of the Employers Council on Flexible Compensation (ECFC), believes most will.
“Employers put in these plans in order to benefit employees they don’t really want employees to lose their money that’s not a good employee benefit.”
The ECFC had been hearing from members who wanted to do something.
Sweetnam told WAVY, “We’re very happy to see that the legislators thought that this was a good idea.”
Many who are now working from home aren’t using daycare for their kids or older relatives living at home.
In addition, some people had to put off healthcare visits or surgeries last year that they had put away money for in an FSA.
Sweetnam said this will give them some breathing room.
Congress also raised the age of child dependent care eligibility from 13 and under to 14 and under.