The plan year is almost over, so now is a good time to double-check your TexFlexSM flexible spending account (FSA) balances. If you contributed to a TexFlex FSA in Plan Year 2020 and did not use all of your funds, you still have time. Even if you don’t spend the money in your FSA by August 31, all is not lost.
Carryover or grace period
- Health care and/or limited-purpose FSA participants
You can carry over $25 to $500 of unused funds to the next plan year. (You forfeit any unused amount over $500.) This feature, paired with a run-out period to submit claims, helps ensure you won’t have to forfeit any funds.
- Dependent care FSA participants
You cannot carry over money left in your TexFlex dependent care FSA.
- Commuter spending account (CSA) participants
A CSA is a month-to-month benefit. You can enroll in an account, change your contribution amount or close your account at any time—without waiting for Summer Enrollment or a qualifying life event (QLE). At the end of each month, any balance over $3 rolls over to the next month.
Time to use your Plan Year 2020 funds
Under the coronavirus aid bill and IRS Notice 2020-29, health care, limited-purpose and/or dependent care FSA participants can use their Plan Year 2020 funds to pay for eligible expenses through December 31, 2020. All claims must be posted (and mailed claims postmarked) by December 31. Claims sent in after December 31 will be denied.
- If you are a health care or limited-purpose FSA participant and end your participation in the FSA before the end of Plan Year 2020 (August 31, 2020), you still can use your remaining funds to pay for eligible expenses incurred through December 31, 2020, as long as you remain an active employee.
- If you are a dependent care FSA participant, you can use any remaining funds you have contributed through December 31, 2020, even if you terminate employment.
Points to remember
If you haven’t already, be sure to sign up for direct deposit. Direct deposit allows you to receive your reimbursement quicker if you submit electronic or paper claims. Contact TexFlex customer care at the number below for more information on how to set up a direct deposit.
If you want to be sure to use your health care FSA funds to avoid forfeiture, keep in mind there are a number of eligible products you can stock up on. The online FSA store is a good resource. Just be sure to keep your receipts.
For more information, please log in to your TexFlex account or contact TexFlex Customer Care toll–free at (844) 884–2364 (TTY: 711), Monday–Friday, 7 a.m. – 7 p.m. CT.
Source: ERS News About Your Benefits (August 2020)
Categories: Benefits, News, Personal Finance, Wellness