What is the temporary relief?
Typically, the maximum Health/Limited Purpose FSA rollover would be 20% of the IRS maximum balance (e.g. $550 for the 2021 Health FSA maximum of $2,750) and no rollover for Dependent Care FSAs. However, the Consolidated Appropriations Act of 2021 allows some Health, Limited Purpose, and Dependent Care FSA plan participants to rollover their entire unused balance to the following plan year.
Who is eligible for this relief?
This relief does not apply to all FSA plans, so please refer to your plan materials or contact firstname.lastname@example.org 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 may apply to plan years ending in 2020 and/or 2021 (rolling over balances to plan years ending in 2021 and/or 2022).