The Postal Service wants employees to know about recent changes to the Federal Flexible Spending Account program.
The program, also known as FSAFEDS, allows employees to make pretax payroll contributions to cover their family’s health, dental, vision and day care expenses, saving approximately 30 percent on out-of-pocket costs.
Recently enacted laws have allowed the U.S. Office of Personnel Management to implement the following flexibilities to FSAFEDS:
• Participants will receive full carryover for a health care flexible spending account and a limited-expense FSA, if they reenrolled in 2021.
• The grace period has been extended for a dependent care flexible spending account for 2020 and 2021.
• Dependent care expenses for children 14 years and younger are reimbursable for 2020 and 2021.
• Dependent care flexible spending account participants can increase their election up to $10,500 for 2021 ($10,500 for single or married filing jointly and $5,250 for married filing separately). This can be done if the participant experiences a qualifying life event.
• Face masks and hand sanitizing wipes (with a minimum of 60 percent alcohol) are eligible for reimbursement.
Eligible USPS employees can enroll in FSAFEDS during the annual open season benefits enrollment period in the fall.
New and newly eligible employees can enroll outside of open season within 60 days of their start date or within 60 days of a qualifying life event, such as marriage or childbirth. Enrollment must take place on or before Sept. 30.
For additional information, go to the FSAFEDS website or call 877-372-3337 (TTY: 866-353-8058).