On March 11, 2021, The American Rescue Plan Act of 2021 (ARPA) was signed into law by President Biden. ARPA allows employers to increase the annual limit on contributions to dependent care FSAs up to $10,500 for the 2021 plan year only. While it is optional, we have decided to adopt this change.
If you are interested in making a change to your DCFSA election, please keep the following in mind:
- The election must be made prospectively, so you cannot elect a date prior to the date you are entering the change in FermiWorks.
- You can increase or decrease your election within the plan limits, but your new annual election cannot be lower than the total amount of your 2021 contributions to date. If you wish to suspend your contributions for now, your annual election should be the exact amount of your year to date contributions. You can go to payflex.com to view your account or review your paystubs to confirm this amount. You may also contact payroll at email@example.com to verify the correct amount.
- The election change does not have to be made consistent with a qualifying life event/change in status and no documentation is required.
- The change will take effect as soon as administratively feasible, within 1-2 payroll cycles depending on when it is submitted.
- You can make subsequent changes during the year as circumstances change.
- The $10,500 annual limit applies only to the 2021 plan year.
- DCFSA accounts only reimburse up to the amount the account is funded. For example, if you have contributed $1,000 to your account and you submit $2,000 in claims for reimbursement, you will be reimbursed for $1,000. The rest of the claims will be paid out as more funds are contributed.
Attached are instructions for making a change in FermiWorks. Services login is required.