DCFSA COVID-19 Updates

DCFSA

• What does the Consolidated Appropriations Act 2021 (commonly referred to as the CAA) mean for my DCFSA?

  The CAA offers employers several options to provide temporary relief to DCFSA holders. The provisions of the CAA include the ability to expand carryover amounts or extend grace period dates for qualifying members and allows employers to temporarily update the age limit for DCFSA eligible dependents from 13 to 14 in some circumstances. The CAA may also allow spend-down of DCFSA funds even if you leave your employer.

  All provisions of the CAA are at your employer’s discretion, so please check your plan details for more information.

• Is there a difference between dependent care reimbursement arrangements (DCRA) and DCFSA?

  While the name is different, the account type is the same. Whether your account is called a DCRA or a DCFSA is determined by the provider.

• Can I change my election amount due to not needing care as I am now working from home?

  The DCFSA election change rules are very broad. Employees may change their respective status if there’s a change in the child-care provider. The change must be consistent with the reason for the change. For example, the provider is no longer providing the care (e.g., summer day camp cancels or care is no longer needed) the election can be reduced or eliminated.

  Plans vary by employer, and these changes do not necessarily change the benefits available under your employer's plan. Please review plan documents carefully or consult your employer for information about your company's benefits.

• Am I going to lose any funds that I have contributed?

  A DCFSA is typically a “use-it-or-lose-it” account, and IRS regulations prohibit employers from rolling over funds from year to year. However, due to the pandemic, the CAA allows employers to adopt provisions that make the DCFSA more flexible. Please check your plan for more details.