We expect the health FSA vendors and HRA vendors will be providing the option to amend the plan to allow these as eligible expenses in the near future. For example, a calendar year health FSA or HRA that begins reimbursing COVID-19 in 2021 would need to adopt the amendment no later than December 31, 2022. The adoption date must not be later than the last day of the first calendar year beginning after the end of the plan year in which the plan begins reimbursing COVID-19 PPE expenses. The amendment can be adopted retroactively on or before Decemfor expenses incurred on or after January 1, 2020.
This addition is optional for the health FSA and HRA, and therefore employers must amend the plans if they would like them to reimburse employees’ COVID-19 PPE expenses. TTY 1-86.The IRS recently released Announcement 2021-7 notifying taxpayers that amounts paid for personal protective equipment (PPE) such as masks, hand sanitizer, and sanitizing wipes, for the primary purpose of preventing the spread of COVID-19 now qualify as medical care expenses under § 213(d) of the Internal Revenue Code.īecause these COVID-19 PPE costs are now considered to be medical care expenses, they are also eligible to be paid or reimbursed under a health FSA, HRA, or HSA. New and newly eligible employees who wish to enroll in this program must do so within 60 days after they become eligible, but before October 1 of the calendar year.įor further information, visit or call 1-87. Enrollment does NOT carry forward year to year. Current enrollees must remember to enroll each year to continue participating in FSAFEDS. Open Season enrollments are effective January 1 of the following year. How do I get started?Įligible employees can enroll in FSAFEDS each year during the Federal Benefits Open Season (the November/December timeframe).
Fsa eligible expenses 2021 plus#
That means you get $2,000 worth of health care purchasing power PLUS pay about $600 LESS in Federal taxes. The average tax savings for a person earning $50,000 who contributes $2,000 into an FSA account is approximately $600. The money contributed to your FSAFEDS account is set aside before taxes are deducted, so in most cases you save about 30% on your Federal taxes. The minimum election for all accounts is just $100 and carryover has been adopted for health care and limited expense health care FSAs.
This account allows you to set aside money to pay for your day care expenses. Think of it as a savings account that helps you pay for items that typically aren’t covered by your FEHB Plan, the Federal Employees Dental and Vision Insurance Program, or other health insurance coverage.įSAFEDS also offers an account for families with young children or elder care expenses – the Dependent Care FSA. If you're an employee who works for an Executive branch agency or an agency that has adopted the Federal Flexible Benefits Plan ("FedFlex"), you can elect to participate in the Federal Flexible Spending Account Program (FSAFEDS).įSAFEDS allows you to save money for health care expenses with a Health Care or Limited Expense Health Care FSA. Flexible Spending Accounts Toggle submenu.Transparency in Healthcare Toggle submenu.Changes in Health Coverage Toggle submenu.
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