Extension of DCAA Claims Grace Period
The Flex Spending Account (FSA) is a negotiated employee benefit that helps state employees save money by allowing certain expenses to be paid with pre-tax dollars.
Employees eligible for FSAs are subject to the use-it-or-lose-it rule, meaning that any account balances remaining at the end of the plan year are typically forfeited. The Flexible Spending Accounts for State employees were previously enhanced to allow for IRS provisions to help reduce potential forfeitures for 2020.
The State FSA includes the Dependent Care Advantage Account (DCAA). The DCAA helps state employees pay for custodial child care, elder care, or disabled dependent care while they are at work.
Due to the unprecedented events in 2020, the state’s DCAA account was enhanced to allow a temporary grace period in 2021 for participants to incur dependent care expenses that could be reimbursed using 2020 account balances (as long as they had DCAA as of Dec. 31, 2020).
The DCAA temporary grace period has been extended. Funds remaining from the 2020 NYS DCAA plan year can now cover expenses incurred between Jan. 1, 2020 to Sept. 15, 2021. Additionally, DCAA enrollees may seek reimbursement for children who turned 13 during the 2020 plan year.
Please note the DCAA claims submission deadline; the last day to submit DCAA claims incurred through Sept. 15, 2021 is Sept. 30, 2021.
Participants can check remaining balances on their DCAA accounts by contacting the NYS Flex Spending Account hotline at 1-800-358-7202 or online at participant.wageworks.com/nysfsa.