On April 1, 2021, PEBB issued an email to all benefits-eligible employees:
(Copied from the Email)
ARPA temporarily increases the maximum amount of DC FSA benefits that you can exclude from income for the 2021 tax year:
- Single taxpayers or those who are married and file jointly can now exclude up to $10,500 (was $5,000).
- Taxpayers who are married, but file separately can now exclude up to $5,250 (was $2,500).
Here’s what you need to know about requesting a change:
- PEBB is offering a special enrollment period from April 1 through April 30, 2021. The change will become effective on May 1.
- You may newly enroll or increase current contributions during this special enrollment. You may not make other changes without a Qualified Status Change (QSC).
- To request a change, please complete the ARPA DC FSA form and send it directly to firstname.lastname@example.org. We must receive it by midnight on April 30. Please do not send it to your Human Resources or Payroll office. This can cause delays and you may miss the deadline.
- After the special enrollment period, you may only make changes if you experience a QSC.
Other important information:
- If you make monthly contributions through December 2021, you will have an extra grace period to incur claims. ASI Flex will reimburse claims incurred through March 15, 2022. ASI Flex must receive your claims no later than March 31, 2022.
- If you cancel your DC FSA before the end of the year (say in October or November), you will not have a grace period. ASI Flex will only reimburse claims incurred through December 2021. ASI Flex must receive your claims no later than March 31, 2022.
- You may only submit claims for the months you contribute. If you newly enroll in May 2021, you may not submit claims for January through April 2021. If you continue to contribute through December, you will have an extra grace period through March 15, 2022, to incur claims.
- You will lose any money left over in your DC FSA after March 31, 2022. Plan carefully.
Remember, the most you can contribute is $10,500 if you are single or are married and file jointly. If you are married but file separately you can only contribute up to $5,250. The most a family can contribute is $10,500.