The Office of Personnel Management (OPM) recently announced that federal employees can enroll in flexible spending accounts from now through June 30, implementing provisions of the FY 2021 spending package and the COVID-19 relief bill passed in March 2021.
Flexible spending accounts allow government employees to set aside funds on a pre-tax basis for childcare and out-of-pocket medical expenses. Originally, money in FSAs did not carry over from year to year, but the omnibus spending package passed in December of 2020 changed this policy and allowed employees to carry over funds from 2020 to 2021. The American Rescue Plan also raised the age for dependents that are covered within FSAs from thirteen to fourteen years old.
OPM announced a Special Enrollment Period (SEP) for Health Care FSAs, Limited Expense Health Care FSAs, and Dependent Care FSAs until June 30. For more information, employees can go to FSAFEDS.com.
