|Posted:||December 8, 2020 09:19 AM|
|From:||Representative Perry S. Warren|
|To:||All House members|
|Subject:||Flexible Spending Account Changes Due to COVID-19|
|Flexible Spending Accounts (FSAs) are used by families across Pennsylvania to set money aside from each paycheck for health, dependent care, medical premium, and adoption costs. However, the COVID-19 disaster emergency has upset this careful planning and forced families to make tough financial decisions, particularly with the closure of schools and childcare facilities. Due to daycare and summer camp closures, for example, many families will not be able to spend their dependent care FSA funds in 2020 and may have more money left over than may be carried over into next year.
Congress needs to take action to ensure that 100% of the funds in FSAs will be able to be rolled over into 2021 in order to provide some much needed financial flexibility following this unprecedented public health emergency. For this reason, I am introducing a resolution which will urge Congress to pass legislation to do so. While the IRS recently announced that they will allow mid-year changes to contribution amounts and increase the rollover limit for health FSAs from $500 to $550, more needs to be done to support those who have been paying into a FSA for health and childcare expenses and who are in danger of losing their rightfully earned money at the end of the year.
During these uncertain times, we need to do everything we can to support the hardworking Pennsylvanians relying on us. Please stand with them by cosponsoring this resolution.
Introduced as HR21