January 2021 Newsletter

FLEXIBLE SPENDING ACCOUNT (FSA) REMINDERS AND COVID-19 UPDATES The University System Office continues to monitor IRS guidelines as it pertains to the Healthcare FSAs, Dependent Care Spending Accounts and HSAs Employees are not automatically re-enrolled each year. FSAs must be re-elected each year, during annual open enrollment . IRS rules require you to forfeit any balance left in your FSA account(s) at the end of the year — the “use it or lose it” rule. However, All USG FSA plans have a grace period, allowing 2020 claims to be submitted by March 31, 2021, for claims with a date of service through March 15, 2021. 3