On June 29th, the Group Insurance Board (GIB) approved the following flexibility granted by the IRS due to the COVID-19 pandemic:
- Participants can make a mid-year change to the Flexible Spending Accounts (FSA) and Dependent Day Care Accounts without a qualifying life event.
- Participants enrolled in the Health Care FSA and Limited Purpose Health Care FSA can now carry over $550 for 2021. This is an increase of $50.
When can an employee make changes to these accounts?
- July 1, 2020 – August 31, 2020
Which employee(s) can make changes to these accounts?
- Currently enrolled employees have a one-time opportunity to increase or decrease* their annual contribution.
When is the increase or decrease to their elections effective?
- The first of the month on/following the receipt of the Election Change Request
*Employees may only decrease their annual contribution to the amount already contributed or spent year-to-date, whichever is greater.
How should an employee initiate an increase or decrease to their election(s)?
- To make a change, an employee should complete the Election Change Request Form.
- In the ‘Reason for Request” section, they should check “COVID-19”.
- Submit the complete Election Change Request Form to their local Payroll & Benefits Specialist (P&B)
What will happen to unused DCFSA contributions?
- At this time, the current guidelines are still in effect at UW-Madison for Dependent Care FSA (DCFSA) year-to-date contributions.
- Refunds for and/or roll over of unused year-to-date contributions are not allowed.*
- The year-to-date contributions must be used prior to end of day 12/31/2020 or in cases of termination prior to 12/31/2020 – the last day of the month in which the last deduction occurred.
- If funds go unused by 12/31/2020 (or month of last deduction), the funds will be forfeited.
*If this guideline should change, we will notify HR Reps / HRS Coord. as soon as possible.