January 22 Email from Harvard Benefits Office

2020 FSA Plan Year (January 1 – December 31, 2020)

• Carryover of all unused 2020 Health Care and Limited Purpose FSA funds into a 2021 FSA: Unused 2020 Health and Limited Purpose FSA balances will carry over into a 2021 FSA. Participants have until March 15, 2022 to incur eligible expenses and until March 31, 2022 to file for reimbursement for any funds in a 2021 health care and limited purpose FSA, including carryover amounts. This is a change from the usual grace period. Please allow 3-5 business days for this change to be reflected in your Benefit Strategies account.
• Reimbursement Deadline Extension for 2020 Health Care and Limited Purpose FSA expenses incurred in 2020: Participants who incurred eligible health care expenses in 2020 have until June 1, 2021 to submit for reimbursement.
• Extending Grace Period for Dependent Care FSA: Participants with a balance in a 2020 Dependent Care FSA have until December 31, 2021 to incur eligible expenses and until January 31, 2022 to file for reimbursement. This is an extension of the original grace period of March 15, 2021 to incur expenses and March 31, 2021 to file for reimbursement.
• Dependent Care FSA Expenses for Aged-out Dependents: The Dependent Care FSA limits reimbursement of qualifying dependent care expenses to children under age 13. However, the CAA allows for reimbursement of qualifying expenses for children who turned 13 in 2020. The University will adopt this change for the 2020 Plan Year. The above-mentioned extended grace period applies to these expenses.

For additional information, refer to the 2020 Plan Year FSA CAA Changes FAQs on HARVie.

2021 Plan Year (January 1 – December 31, 2021)

• Midyear Prospective Changes to FSA: Typically, changes to an FSA are only allowed within 30 days of a qualifying life event (QLE). The CAA allows employers to increase flexibility so that changes can be made outside of a QLE. The University will allow employees to make the changes outlined below to their 2021 FSAs through September 30, 2021 (no changes will be accepted after September 30, 2021 unless they are within 30 days of a QLE). All changes are effective prospectively (going forward) only. You can find FAQs on HARVie.
• Health FSA (including limited purpose). Election changes will be effective as of the date the completed form is processed by the Benefits Office.* You may make the following changes:
  
• Enroll in or increase current election: If you are enrolling for the first time this year, expenses incurred prior to the effective date are not eligible for reimbursement. If you are increasing your election, the additional amount can only be used for expenses incurred on or after the effective date of the increase.
• Reduce current election: You cannot reduce your election to less than what you have already been reimbursed (includes any pending claims) or have contributed, whichever is higher, as of the effective date of the reduction.
• Cancel current election: Expenses incurred on or after the cancellation date will not be eligible for reimbursement. If you have been reimbursed more than you have contributed, your annual election amount will be changed to the amount you have been reimbursed, and you will see adjusted deductions for the remainder of the year.
• Dependent Care FSA. Election changes will be effective as of the date the completed form is processed by the Benefits Office.* You may make the following changes:
• Enroll in or increase current election: If you are enrolling for the first time this year, expenses incurred prior to the effective date are not eligible for reimbursement. If you are increasing your election, the additional amount can only be used for expenses incurred on or after the effective date of the increase.
• Reduce current election: You cannot reduce your election to less than what you have contributed to-date.
•  Cancel current election: Your election will be cancelled going forward. Per IRS regulations, you can be reimbursed for eligible expenses incurred through December 31, 2021.