On March 11th, the American Rescue Plan ACT (H.R. 1319) was signed into law by President Biden and would expand upon the relief of H.R. 8337 passed on December 21,2020 called, the Consolidated Appropriation Act, 2021 and Other Extension Act. Both pieces of legislation provide temporary relief to Flexible Spending Participants.
- Parents may elect up to $10,500 in a Dependent Care FSA plan to use for eligible expenses throughout the 2021 calendar year. This is more than double the standard cap of $5,000 per couple/$2,500 single, which also doubles a family’s average tax savings to $200 a month!
- Parents may carry over any amount of unused contributions from 2020 into their 2021 DC-FSA plan year, as well as from 2021 into 2022. With the increased election limit for 2021, that could equate to a potential carryover amount of up to $15,500 into the 2022 plan year!
- Parents may submit eligible DC-FSA claims for dependents up to age 14 years old (previously up to 13 years old).
- Parents may make midyear DC-FSA election changes or enroll in a DC-FSA plan with no employment status requirement.