If you have a TexFlexSM flexible spending account (FSA)
, you still have time to spend Plan Year 2020 FSA funds on eligible expenses and submit eligible claims
for those expenses.
Plan Year 2020 spending deadline
The IRS has extended the spending window for PY20 FSAs through December 31, 2020. That means you have until the end of the calendar year to use your Plan Year 2020 FSA funds to pay for eligible health care, limited-purpose or dependent care expenses.
Plan Year 2020 claims submission deadline
The deadline for submitting claims has not changed. So, as in past years, you have until December 31, 2020 to submit your claims paperwork for money spent on eligible health care, limited-purpose or dependent care expenses. If you miss this deadline to submit your claims, you may forfeit at least some funds you contributed to your FSA in PY20.
Learn more by reviewing TexFlex updates due to COVID-19.
What if I don’t submit claims for all the funds in my TexFlex account by the end of 2020? Will I lose them on January 1, 2021?
Dependent care FSA: If you don’t submit claims for your dependent care FSA by December 31, 2020, you will lose any remaining PY20 funds in that FSA.
Health care and limited-purpose FSAs: These accounts have a carryover feature, which allows you to carry up to $500 of the unused funds from one plan year to the next. (Note: If you did not enroll in a TexFlex health care or limited-purpose FSA for Plan Year 2021, there is a $25 minimum to carry over into the new plan year.) This carryover option–which does not apply to TexFlex dependent care FSAs–reduces your risk of giving up unspent money in your TexFlex account. You can carry over up to $500 from one plan year to the next. You will forfeit any unspent PY20 funds over $500.
- Please note: For any eligible expenses you incur between September 1 and December 31, TexFlex will use the health care or limited-purpose FSA contributions deposited in the current plan year first. If you exhaust current plan year funds, then TexFlex will use any carryover funds for those current expenses. Carryover funds are used last for current plan year expenses, so they can be applied through the runout period (until December 31) to any expenses incurred in the previous plan year.
In other words, through the runout period (ending December 31), TexFlex makes reimbursements from health and limited-purpose FSAs in the following order:
|Reimbursement of prior plan year expenses from
||Reimbursement of current plan year expenses from
|1. Remaining prior plan year funds over $500, until exhausted
||1. Current plan year funds, until exhausted
|2. Carryover funds (up to $500)
||2. Carryover funds (up to $500)
This ensures the maximum reimbursement for you. Keep in mind thatyou can carry over funds up to $500 every year.
Learn more on the Program Resources page.