If your plan has a January effective date and you offer a flexible spending account (FSA), it’s a good time to remind members that December 31, 2020 is the final day they can use any remaining 2020 funds. Additionally, for most plans, March 31, 2021 is the last day to turn in reimbursement requests for qualified 2020 purchases.
Alternately, if your FSA allows a set amount of funds to be carried over for 2021 use, remind members that any unused funds above that amount need to be used by December 31, 2020 or they will be forfeited.
One more important reminder: Earlier this year, the CARES Act permanently reinstated coverage of over-the-counter (OTC) medications as eligible for reimbursement from FSAs without need for a prescription. Account funds can now be used to buy popular OTC medications such as aspirin and ibuprofen. This change was retroactively effective for expenses incurred on or after January 1, 2020.
Visit MedBen.com to download FSA Request for Reimbursement forms or view a list of IRS-qualified expenses. If you have any questions regarding these reminders, please contact MedBen Director of Administration Sharon A. Mills at email@example.com or your Account Management team.