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Posted on: April 23, 2020

Flexible Spending Accounts and COVID-19 Elections Changes

Flexible Spending Accounts

Due to recent coronavirus-related life events, flexible spending account participants may be eligible to change their elections. For some whose life situations were altered, there are options to suspend, modify or add an election.

Dependent Care Flexible Spending Accounts (DCFSA)
In the wake of the COVID-19 pandemic, employees may experience some disruptions to their current or upcoming childcare arrangements. If currently enrolled in the DCFSA, a participant may be eligible to suspend their election, to stop contributing or to modify their contribution amount.

Should your family’s needs require you to seek new provider services that costs money, you may be eligible to add an election to DCFSA. Please refer to the link for qualifying event examples as they relate to COVID-19. If you qualify, please contact Human Resources at hrbenefits@plano.gov.

Health Flexible Spending Accounts (FSA)
With the CARES Act update, the IRS expanded the eligible expenses list due to COVID-19. FSA funds can now be used to purchase over-the-counter (OTC) medical products and feminine hygiene products without a prescription from a physician. This is a permanent change to the eligible expenses list and includes retroactive purchases made after December 31, 2019.

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