March 24, 2021

Changes allowed to flexible spending account contributions in 2021

A recent law was passed called the 2021 Consolidated Appropriations Act, and Purdue will adopt a provision that allows employee changes to 2021 contribution amounts for:

  • Health care flexible spending accounts (HCFSA).
  • Limited purpose flexible spending accounts (LPFSA).
  • Dependent care flexible spending accounts (DCFSA).

Beginning April 1, employees may make up to two of the following changes to their elections for the above-mentioned accounts in 2021:

  • Increase annual contribution amount (cannot exceed IRS limits).
  • Decrease annual contribution amount (minimum contribution is $100 annual).

To request a change to their election, employees can email hr@purdue.edu with the subject line “[FSA/LPFSA/DCFSA] Election Change Request” and include their new desired per-paycheck deduction. If multiple accounts need to be adjusted since some employees have more than one type of account, the email should indicate the adjustment for each account.

Employees who have spent some of their FSA or LPFSA funds this year may not decrease their contribution below $100 annually or to an amount lower than they have spent, if they have not yet contributed that amount. HR will review this before making the change.

These changes do not allow employees to drop their accounts. Employees who are not already participating in a 2021 account may not opt into them as a result of these changes.  

The two-change limit does not apply to DCFSA qualifying life events; it only applies to non-life event changes for DCFSAs.

Questions

  • Questions related to the changes above may be directed to Human Resources at 765-494-2222, toll-free at 877-725-0222 or via email at hr@purdue.edu.
  • Account-specific questions (e.g., 2020 account balance inquiries) may be directed to HSA Bank at 800-357-6246.

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