What is the temporary relief?
The Consolidated Appropriations Act of 2021 allows some Dependent Care FSA plan participants to file claims for their eligible dependent care expenses for children through the end of the plan year in which the child turns 13 (rather than the standard IRS provision of only to the 13th birthday).
If a child turned 13 in the 2020 plan year AND the participant rolled over funds into the 2021 plan year, those rollover funds would be eligible for the 13 year-old (until s/he turns 14) during the 2021 plan year. The ruling will allow reimbursements for dependents who first turned 13 in the 2021 plan year to be eligible.
Who is eligible for this relief?
This relief does not apply to all FSA plans, so please refer to your plan materials or contact email@example.com to confirm if it applies to your employer's plan.
When does the relief apply and when does it end?
If this relief applies to your employer's FSA plan, it only applies to the plan year ending in 2021. There is not currently any extension beyond this single plan year.