OPM has said it will soon issue guidance on changes to the FSAFEDS flexible spending account program under several recent laws and an IRS notice affecting FSAs in general.

OPM told benefits officers changes will include “allowing full carryover for a health care flexible spending account (HCFSA) and limited expense FSA (LEX FSA); extending the grace period for a dependent care flexible spending account (DCFSA); and permitting care for dependents through age 14 for 2020 and 2021 under a DCFSA.”


OPM said it will issue detailed guidance soon on those changes, which were enacted in response to the pandemic upsetting normal health care and dependent care patterns.

In addition, OPM said it is working with the FSAFEDS provider to conduct a “special enrollment period” to allow those not enrolled in the program for this year to join it and to allow current enrollees to either increase or decrease current elections for either dependent care or health care accounts. That will include allowing an increase in the latter type of account to a new maximum of $10,500, it said.

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