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COVID-19-related FSA changes

Dependent Day Care FSA limits increased

The American Rescue Plan Act of 2021 allows you to contribute up to $10,500—pre-tax—into your 2021 Day Care Flexible Spending Account (FSA).

For this year only, if you are currently enrolled, you can contribute up to $10,500 to your Day Care FSA, or $5,250 if married and filing separately. (Normally, per year, you can contribute up to $5,000 per household or $2,500 if married, filling separately.) This means you can save up to an additional $1,650 at tax time.

In addition, during May 2021 only, new enrollments in the Day Care FSA are allowed without a qualifying life event.

To increase your current Day Care FSA election or to newly enroll, use the FSA Change Form. New enrollments must be received by the Benefits team by May 31, 2021.

Unlimited FSA carryovers allowed in 2021

New legislation provides relief to employees who may not have been able to use all of their Flexible Spending Account (FSA) funds during the COVID-19 pandemic.

The Consolidated Appropriations Act, a 2021 COVID-19 relief bill, allows a temporary change to FSAs to help employees avoid losing funds. If you have a Health Care or Dependent Day Care FSA, any unused funds in your FSA account will automatically roll over and be available for use the following year. You do not have to be enrolled in an FSA next year to access these funds.

Previously, the maximum carryover limit was $550 for Health Care FSAs, and no carryover has been available for Day Care FSAs.

For additional information, contact Navia Benefit Solutions at 425-452-3500 or email Navia Benefit Solutions. To request a change to your FSA, please contact the King County Benefits Team.

Flexible Spending Accounts (FSAs) can help you save money by paying for certain medical care and day care expenses with pre-tax dollars. FSAs are administered for King County by Navia Benefit Solutions and are convenient and easy to use. You choose how much to put into your FSAs—up to a yearly maximum of $2,750 for health care, and $5,000 for day care for joint tax filers ($2,500 if married and filing separately).

You must use your FSA money for eligible expenses incurred during the plan year, however, you have until March 31 of the following year to submit claims.

How much can you save?

By participating in FSAs, your savings can be significant. Watch the video Pre-Tax FSA Benefits and use the Tax Savings Calculator to help estimate your potential savings.

You must enroll every year

To participate in an FSA, enroll during Open Enrollment. FSAs do not continue automatically—you must re-enroll each year during Open Enrollment. This allows you to reassess your expenditures and change your election amount accordingly. You may also enroll within 30 days of becoming benefits-eligible. Your FSA election remains in effect for the entire calendar year. If you experience a qualifying life event, you can make a change using the FSA Change Form.

FSA details

With a Health Care FSA, you set aside pre-tax dollars from your paycheck into an account you can use to pay for eligible medical expenses. You can use your FSA funds to pay for a variety of medical, dental, and vision care expenses for you, your spouse or eligible domestic partner, and your dependents—for example, deductibles, coinsurance, and copays.

You and your spouse or partner can both participate in FSAs your employers. You could each contribute the maximum and each FSA can cover both of your expenses.

Contributions

You can contribute up to $2,750 per year to your Health Care FSA. Your annual election will be divided into equal contributions over the pay periods within the calendar year. This is a pre-funded benefit, so you have access to your full annual election any time during the calendar year.

Rollover feature

Normally: The Health Care FSA is subject to the “Use-it or Lose-it” rule. If you do not use all of your annual election within the plan year, the remaining funds are not refundable to you. The carryover feature allows you to roll over up to $550 into the next plan year. Any other unused funds are forfeited.

However, the COVID-19 relief bill allows a temporary change which allows all unused funds in your 2021 FSA account to roll over and be available for use next year. You do not have to be enrolled in an FSA next year to access these funds

Eligible expenses

The IRS determines which expenses are eligible for reimbursement. Go to the Navia site to view the list of Eligible Health Care Expenses. Some expenses require a Letter of Medical Necessity from a licensed health care professional for reimbursement.

Additional information

You can set aside pre-tax dollars in your Day Care FSA to pay for day care or dependent care expenses for your child under age 13, disabled spouse, or dependent parent so you can work or attend school full-time.

Contributions

Normally, per year, you can contribute up to $5,000 per household to your Day Care FSA, or $2,500 if married and filing separately. However, with the passage of the American Rescue Plan Act of 2021, for 2021 only, you can contribute up to $10,500, or $5,250 if married and filing separately.

Your annual election will be divided into equal contributions over the pay periods within the calendar year. You can only be reimbursed up to the amount actually deducted from your paycheck.

Temporary rollover feature

Normally, unused funds cannot be refunded to you. However, the COVID-19 relief bill allows a temporary change which allows all unused funds in your 2021 Day Care FSA account to be rolled over and available for use next year. You do not have to be enrolled in an FSA next year to access these funds. 

Eligible expenses

Some common eligible expenses include child and adult day care, preschool, and before- and after-school care. Go to the Navia site to view the list of Eligible Day Care Expenses.

Additional information

First, create an account at Navia Benefit Solutions using code KIG. Use the methods below to submit claims for reimbursement. You can be reimbursed by check or direct deposit. To set up FSA automatic deposits, go to your Navia account profile and select your reimbursement method.

Health Care FSA

To access your FSA funds to pay for eligible expenses, submit a claim and substantiating documentation using one of the following methods:

  • Navia Benefits Debit Card: Funds are pulled directly from your FSA and paid to the provider when you swipe your card. Some debit card expenses require substantiation with itemized documentation, go online to submit documentation.
  • MyNavia mobile app: Submit claims and documentation using your phone and camera.
  • Online claim submission at Navia Benefit Solutions: To be reimbursed for eligible expenses, login to submit a claim and documentation. 
  • Paper FSA Claim Form: Mail, fax, or email claim forms and documentation to Navia.

Day Care FSA

To access your FSA funds to pay for eligible expenses, submit a claim and substantiating documentation using one of the following methods:

  • MyNavia mobile app: Submit claims and documentation using your phone and camera.
  • Online claim submission at Navia Benefit Solutions: To be reimbursed for eligible expenses, login to submit a claim and documentation. 
  • Paper FSA Claim Form: Mail or email claim forms and documentation to Navia.

 

 

Contact Information

Navia Benefit Solutions

Hours: Mon. – Fri., 5 a.m. – 5 p.m. PST

Phone: 425-452-3500 or 800-669-3539, 711 (TTY)

Fax: 425-451-7002 or 866-535-9227 

Email: Navia Benefit Solutions

Web: Navia Benefit Solutions

 

Claims

Claim Form
claims@naviabenefits.com
Navia Claims

PO Box 53250

Bellevue, WA 98015

 

Benefits and retirement

Phone 206-684-1556
Fax: 206-296-7700

Phone hours:
9 a.m. – 4 p.m. weekdays
Payroll

Fax: 206-296-7678