Unlimited FSA carryovers now allowed
New legislation provides relief to employees who may not have been able to use all of their Flexible Spending Account (FSA) funds during the pandemic.
The Consolidated Appropriations Act, 2021 COVID-19 relief bill signed into law on Dec. 27, 2020, allows a temporary change to FSAs to help employees avoid losing funds. If you have a Health Care or Dependent Day Care FSA, any unused funds in your FSA account from last year will be rolled over and available for use this year.
The rollover of funds from 2020 to 2021 will happen automatically and should appear in your Navia account by Feb. 1. You do not have to be enrolled in an FSA this year to access these funds. The COVID-19 relief bill also allows unlimited carryover of FSA money from 2021 to 2022.
Previously, the maximum carryover limit was $550 for Health Care FSAs, and no carryover was available for Day Care FSAs.
- Day Care FSA participants: You can use these funds to pay an eligible family members to watch your children, as long as the family member is not your tax dependent (your spouse, the parent of the child, your dependent, or your child under the age of 19). Online or “virtual” day cares and camps are not eligible for reimbursement with Day Care FSAs, according to IRS regulations.
- Health Care FSA participants: You can use these funds to purchase over-the-counter medications and expenses, including menstrual care products. Health Care FSA funds can also be used for eligible ergonomic office equipment when you obtain a letter of medical necessity from your doctor.
For additional information, go to the Flexible Spending Accounts page or contact Navia Benefit Solutions at 425-452-3500 or email Navia Benefit Solutions. To request a change to your FSA, please contact the King County Benefits Team at KC Benefits or 206-684-1556.