Submitted by Rep. Brad Wenstrup.

Congressman Brad Wenstrup released the following statement after the Trump administration announced guidance to provide relief to individuals with Health Flexible Spending Accounts and Dependent Care Flexible Spending Account. The announcement came after Congressman Wenstrup and his colleagues sent a bipartisan letter to the Trump administration requesting additional flexibility for FSA beneficiaries.

“This coronavirus pandemic has thrown a wrench in many of our plans, and individuals and families with Health and Dependent Care Flexible Spending Accounts shouldn’t be penalized because of these unforeseen events. I thank the administration for incorporating some of my recent recommendations to give more flexibility for FSA and DCFSA utilization. As this crisis wears on, Congress must be ready to make additional statutory changes as needed so that Americans can fully utilize their savings, and I look forward to that continuing work,” Wenstrup said.

Background:

On April 12, the IRS announced it will provide taxpayers greater flexibility by:

– Extending claims periods for taxpayers to apply unused amounts remaining in a health FSA or dependent care assistance program for expenses incurred for those same qualified benefits through Dec. 31, 2020.

– Expanding the ability of taxpayers to make mid-year elections for health coverage, health FSAs, and dependent care assistance programs, allowing them to respond to changes in needs as a result of the COVID-19 pandemic.

– Applying earlier relief for high deductible health plans to cover expenses related to COVID-19, and a temporary exemption for telehealth services retroactively to Jan. 1, 2020.

Last month, Congressman Wenstrup, along with Congressmen Thomas Suozzi (D-NY-03), Darin LaHood (R-IL-18), Bradley Schneider (D-IL-10), Mike Kelly (R-PA16), Kenny Marchant (R-TX-24), Daniel Kildee (D-MI-05), Ron Estes (R-KS-04), John Larson (D-CT-01), Ron Kind (D-WI-03), and Drew Ferguson (R-GA-03), wrote to the Trump administration asking for temporarily flexibility for FSA and DCFSA accounts. Notably, the group requested that employees with FSAs and DCFSAs be permitted to make mid-year benefit changes to their plan.