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COVID-19 Flexible Spending Account Changes

Thursday, March 25, 2021

Flexible Spending Account (FSA) and Dependent Care Account (DCA) Changes Due to COVID-19

The Consolidated Appropriations Act, 2021, signed into law on December 27, 2020, provides temporary relief for health and dependent care (daycare) flexible spending accounts. OSU has decided to adopt the optional provisions noted below. These provisions will offer additional flexibility to our participants and minimize risk of forfeiting any unused health or dependent care (daycare) flexible spending contributions following the 2020 and 2021 plan years in light of the COVID-19 pandemic.

  1. Unlimited carryover — This provision allows unlimited carryover of ALL unused health and dependent care (daycare) flexible spending funds from plan year 2020 to 2021 and plan year 2021 to 2022, in addition to any newly elected contributions.*
  2. Dependent care (daycare) age limit increase — This provision allows employees enrolled in a dependent care (daycare) flexible spending account as of January 31, 2020, access to any unused funds from the previous year for dependent children under the age of 14, previously under age 13. If your dependent child aged out of the plan as they turned 13 during 2020, you may submit eligible dependent care expenses for reimbursement during the 2021 plan year.

*If you elected a Health Savings Account (HSA) in 2021 or plan to elect a HSA in 2022, funds cannot be carried over to the following year for a health flexible spending account (FSA). Per IRS regulations, employees cannot have a HSA and FSA during the same calendar year. Please contact OSU Benefits at osu-benefits@okstate.edu or call 405.744.5449 with any questions.

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