What is the temporary relief?
Typically, participants must have a Qualified Status Change in order to change their Health, Limited Purpose, or Dependent Care FSA election outside of Open Enrollment. However, the Consolidated Appropriations Act of 2021 allows some Health, Limited Purpose, and Dependent Care FSA plan participants to make a mid-year election change on a go-forward basis without an underlying change reason.
The change cannot be retroactive and Health FSAs cannot be reduced below amounts already reimbursed.
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. In addition, some plans may have additional restrictions such as only allowing one mid-year change per plan year.
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 2021.