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Top Considerations for Adopting FSA Funding Relief

Under the Consolidated Appropriations Act, 2021, employers can provide flexible spending account (FSA) participants with the options to make midyear contribution changes and to roll over unused amounts at the end of 2020 or 2021. Employers have several practical considerations when deciding whether to adopt these changes.

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Appropriations Act Permits Midyear FSA Elections, Unlimited Carry-Over Amounts Through 2021

The Consolidated Appropriations Act allows participants to roll over all unused amounts in their health and dependent care flexible spending accounts (FSAs) from 2020 to 2021 and from 2021 to 2022. Employers can also allow employees to change their health or dependent care FSA contribution rates during 2021.

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