If you put off a dental work in 2020 due to COVID-19 and you didn’t spend all of the money in your Flexible Spending Account (FSA), we have some good news for you.
Typically, FSA participants make elections for an annual amount they anticipate utilizing in a calendar year. In a normal year, when a patient can rely on regular appointments and other planned FSA-qualified expenses, they are able to budget spending to take advantage of a tax-free FSA incentive. The challenges of 2020 put many participants in a tough spot because they didn’t spend their total budget and could now be facing a tight “use it or lose it” time table.
Here’s the good news: It is possible that savers can now spend 2020 FSA savings in 2021. The important change is packed into the latest economic relief package passed by Congress in December.
If your employer amended it’s plan to allow carry over amounts, you may have another year to spend those funds. The Consolidated Appropriations Act allows employers to change their plans so employees can utilize any remaining 2020 FSA funds in 2021.
If you are an FSA plan participant who hasn’t already been notified of any plan updates, you should ask your employer what changes are ahead — if any. Many local companies have large participant pools that are looking at unused FSA savings now after many dental visits and procedures were canceled in the spring and other spending was delayed. Keep in mind that employers have a pretty wide range of options for changes, so it isn’t a one-size-fits-all for all participants.
Even if you don’t have any funds to carry over from 2020, we’d like to remind all of our patients that you can use your FSA funds for dental care.
About Dental Health Associates
At Dental Health Associates of Madison we are here to support you and your overall health and we create a personalized treatment plan for each and every patient. All of our dentists and staff will always be open and honest with you about your dental health, with a focus on preventative treatments and patient education. We’d love to schedule an appointment for you today!