The Consolidated Appropriations Act 2021 (CAA) (the “Act”), signed into law near the end of 2020, gives employers the option to allow participants to rollover all unused amounts in their health care and dependent care flexible spending accounts (FSAs) from 2020 to 2021 and from 2021 to 2022.
Employers may also allow employees a 12-month grace period to pay for eligible expenses with unused funds, allowing participants to incur expenses and use prior year funds to pay for or reimburse expenses during the one-year grace period.
Employers can also allow employees to change their health care FSA or dependent care FSA contribution rate during 2021 without requiring a Qualified Status Change such as the birth a child or getting married.
No, it’s optional. Employers do not have to implement it.
Yes. We are implementing the following provisions of the Consolidated Appropriations Act:
At this time Baker Hughes has chosen not to adopt all components of the Consolidated Appropriations Act. As legislative guidance changes, we will continue to evaluate the legislation to ensure we are making the best and most informed decisions for our employees and for the organization as a whole.
Only if you incurred those eligible expenses in 2020. Claims must be incurred during the plan year (January 1 – December 31) and submitted to UHC by March 31 of the following year to be eligible for reimbursement. Any money you do not use by the end of the year is forfeited.
Yes, if you stop contributing to the Health Care FSA in 2021, you can continue to use remaining funds to pay for eligible expenses during the plan year. Claims must be incurred during the plan year (January 1 – December 31) and submitted to UHC by March 31 of the following year to be eligible for reimbursement. Any money you do not use by the end of the year is forfeited. You do not have to continue to make contributions to the Health Care FSA to use your remaining balance.
No. You have to be an active employee to receive reimbursement for eligible Dependent Care FSA expenses. You cannot submit claims once you terminate employment with Baker Hughes.
Yes. If your qualifying child turned 13 during the pandemic, you can continue to receive reimbursements for the child’s dependent care expenses for the remainder of the 2021 plan year.
Also, as long as you continue to have a balance at the end of the 2021 plan year, you can continue to use your remaining balance to pay for eligible expenses, until your child turns 14. Note that this only applies to your remaining balance – it does not include new contributions.
Yes. You can make changes to your Health Care or Dependent Care FSA if you experienced changes in your personal circumstances due to COVID-19, through the end of 2021.
Note: If you have reached your contribution limit for the year to date, but have claims that may not have been fully covered, you will not be able to resubmit those claims to be paid by your increased contribution.
To make a change to your Health Care or Dependent Care FSA election, call the Baker Hughes Benefits Center. Baker Hughes benefits representatives are available at 1-866-244-3539, Monday - Friday, 7:00 a.m. to 7:00 p.m. CST.
No. The DCFSA limit continues to be $5,000 annually ($2,500 maximum if you are married and file separate tax returns).
No. If you have reached your contribution limit for the year to date, but have claims that may not have been fully covered, you will not be able to resubmit those claims to be paid by your increased contribution.