Verizon sent employees the following email regarding extended deadlines for Health care and Dependent Care Spending Accounts.
Recent legislation enacted as part of the Consolidated Appropriations Act provides relief to flexible spending accounts in light of the disruption caused by COVID-19. This notice explains how the new rules apply to your spending account(s) at Verizon.
Grace Period Extensions:
The March 15 grace period deadline has been extended to December 31, giving you more time to use the money in your Health Care Spending Account (HCSA), Limited Purpose Health Care Spending Account, or Dependent Day Care Spending Account (DCSA).
• Any balance remaining in your 2020 spending account can be used for eligible expenses through December 31, 2021. You will have until January 31, 2022 to submit claims for reimbursement for these expenses.
• Any balance remaining in your 2021 spending account can be used for eligible expenses through December 31, 2022. You will have until January 31, 2023 to submit claims for reimbursement for these expenses.
Please note that the grace period extension for the DCSA could result in tax consequences if you are reimbursed for more than the $5,000 maximum in one year. You should consult with your tax advisor for guidance on your specific situation.
Change to DCSA age limit for 2020 eligible dependents:
If you were enrolled in the DCSA in 2020, had an eligible dependent who turned 13 in 2020, and had an unused DCSA balance at the end of 2020, that balance can be used to reimburse the dependent’s day care expenses that were incurred during 2020 or 2021 and before the dependent’s 14th birthday.
Spending Account – Special Mid-year enrollment or change in election amount beginning April 15
As a result of the pandemic, mid-year election changes may be made to your HCSA and DCSA even if you have not had a qualified life event. Beginning April 15, you may enroll or update your annual election amount online via BenefitsConnection. Any updates made will apply prospectively only, they will not apply retroactively.
• From About You go to BenefitsConnection
• On the BenefitsConnection home page select "Life Events"
• Select the Life Event entitled "Change in Spending Account Election(s)"
• Follow the prompts
If you want to enroll or make a change to your spending account election without a qualified life event, you must do so between April 15 – May 31. Please note that if you wish to reduce your election amount, you may only reduce to the amount you have a) contributed year to date or b) been reimbursed for - whichever is greater. If you elect to enroll or increase your election, the new amount will be taken ratably over the remaining paychecks in the year.
After the special enrollment period has ended, you may only make changes to your spending account if you experience a qualified life event.
A Summary of Material Modification regarding these changes will be sent at a later date and will also be available for review in the Library section of BenefitsConnection.
If you have any questions, contact the Verizon Benefits Center at 855.349.4437. This is a dedicated phone line to assist with inquiries specific to these spending account changes. Representatives are available Monday – Friday, 9 AM – 5 PM Eastern time.
Verizon Benefits Center