Flexible Spending Accounts – Dependent Care Qualifying Life Events And Qualified Medical Expenses Under The Cares Act

Dependent Care Flexible Spending Accounts (DCFSA) – DCFSA participants may increase or decrease their election, if they experience an eligible Qualifying Life Event (QLE).  

If a participant who is paying for childcare/elder care experiences a decrease in cost, a request to decrease the DCFSA election can be submitted. The new election cannot be less than the expenses for which the participant has already been reimbursed or less than the amount already contributed to the DCFSA account. The participant can submit a QLE change request up to 31 days before or 60 days after the date of the event.  For example, a QLE decrease request can be submitted if a dependent care provider is no longer providing care (i.e., before/after care/daycare closes, summer day camp cancels or is limited, or care is no longer needed).  If this situation changes, the participant can again submit a QLE change to increase that election for the rest of the plan year on or before September 30th. 

If the cost for dependent/elder care increases, an employee may elect to participate, or a participant may increase their DCFSA election for the plan year. This election or change must be made on or before September 30th. 

Participants may submit a QLE change online in their account at http://www.fsafeds.com/ or by calling FSAFEDS at 877-372-3337.

Health Care Flexible Spending Accounts (HCFSA) –  Public Law 116-136, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, includes two significant changes that affect participants with a Flexible Spending Account (FSA), Health Savings Account (HSA), or Health Reimbursement Account (HRA), and apply to expense amounts incurred after December 31, 2019:   

  • Over-the-counter drugs and medications can be reimbursed through a Health Care FSA (HCFSA), HSA, or HRA without a doctor’s prescription.
  • HCFSA, HSA, and HRA funds can now be used for feminine care product purchases.

Questions should be directed to FSAFEDS at 877-372-3337