MyLU Insider

Adjustment to Flexible Spending Benefit

The recent passage of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 has allowed changes to our flexible spending benefit. These changes include:

  1. Allow unlimited roll over from the 2020 Health Care FSA into the 2021 plan year.
  2. Provide a grace period for the 2020 Dependent Care FSA until December 31, 2021 which will allow participants to incur eligible expenses and pay for them for this longer time from the Dependent Care FSA.
  3. Allow for up to one mid-year change to Dependent Care and Health Care FSA without an IRS qualifying change or status event for the plan year ending December 31, 2021. Changes allowed include decreasing an existing election to an amount not below the greater of payroll contributions to date or reimbursements to date, increasing an existing election up to the maximum permitted by the plan, making a new election when the employee initially declined to make an election. Changes must be submitted on or before September 30, 2021.

The Summary of Material Modification document provides additional details regarding the changes. Please contact your HR representative if you have any questions or would like to make a change.