Please expect a slight delay in claims turnaround due to COVID-19 staff precautions.
Keystone Flex Administrators, LLC is actively monitoring the COVID-19 situation on a daily basis, along with any legislative updates that may be released.
First and foremost, we are still here to SERVE YOU!
Q: With so many schools and daycare's shutting down we have received a number of questions regarding if an employee’s dependent care facility closes, is that a qualified life event and can an employee stop their contributions to the Dependent Care Flexible Spending Account (DCA)? Also, when the daycare reopens, would that be considered a qualified event and then employees can elect and make a new contribution to the DCA?
A: Yes, this is considered a qualifying event. Even if the employee is working from home and keeping their child at home, since they are no longer making payments to the daycare, that is a change in the amount owed to the DCA (which is a qualifying event).
Q: Can an employee open a DCA now that school is closed and they are in need of childcare?
A: Yes. If an employee doesn’t have a DCA but now needs to pay for childcare, they can open a DCA to cover IRS-approved DCA expenses.
Q: What if I have a change in home child care provider?
· You may increase or decrease your election amount consistent with a change in cost for a new home child care provider, including a change in a nanny-sharing arrangement. However, IRS regulations do not allow a Dependent Care FSA election change for a cost increase by a child care provider who is a relative.
· If there is a change in your home child care provider because a relative or friend has agreed to watch the child for free, you may decrease or cancel your Dependent Care FSA enrollment.
· If you or your spouse change work schedules (including to or from part-time status), changing the hours when outside care is required and the amount of eligible dependent day care expenses, you may increase or decrease the amount consistent with the change in cost.
Q: Due to restaurants shutting down, no paychecks will be issued during this time period. Therefore, contributions for all flex plans will not be able to be made - should they all just do catch-up contributions once they return to work?
A: Yes, catch up contributions can be made once the participants return to work.
Q: HSA Contribution extension?
A: Under IRS Notice 2020-18, issued March 18, the grace period for Health Savings Accounts (HSAs) has been extended to July 15, 2020, from April 15, since the due date for filing federal income tax returns is now July 15. HSA participants can make 2019 contributions to their accounts up to the maximum contribution limit for last year until the new deadline.
Q: Will there be a claims extension beyond the standard March 31 deadline?
A: It was announced at the end of April that the RUN OUT to all plans was extended allowing employees more time to file claims. **NOTE: At the beginning of May an OPTION has also been made available to employers to extend the GRACE PERIOD of their previous plan years through December 31, 2020. ALSO, employers with a plan year beginning in 2020 that currently have the $500 rollover feature on their plan have been given the opportunity to increase the Rollover amount to $550. ***Please contact our offices to see if your employer applied these optional changes to your plans with us.
Q. COBRA Deadline Extensions - Employer/Employee
On April 28th, 2020, the Department of Labor (DOL) issued EBSA Disaster Relief Notice 2020-01, which extends COBRA grace periods to all plan participants.
Here is what you need to know:
Details on extensions below :
(1) the 30 day deadline for employers or individuals to notify the plan of a qualifying event
(2) the 60 day deadline for individuals to notify the plan of a determination of disability
(3) the 14 day deadline for plan administrators to furnish COBRA election notices
(4) the 60 day deadline for participants to elect COBRA
(5) the 45 day deadline in which to make a first premium payment
(6) the 30 day deadline for subsequent premium payments
For additional information about the DOL notice click here.
**All Keystone contact information is provided on all COBRA notices sent out to employees. Employees will need to contact Keystone directly with any questions regarding application of these available extensions.
The COVID-19 relief bill has officially been signed into law. This bill references the CARES ACT which includes provisions that make over-the-counter (OTC) medicines and menstrual products FSA, HSA, and HRA (if applicable to your HRA plan parameters) eligible. With this change, OTC items no longer require a prescription, and menstrual products are eligible for the first time.
Keystone is here to help make the transition for your employees as easy as possible in reference to these new regulations. We believe this is a positive change to the plans, that will further aide families during this pandemic!
Employees cannot YET purchase OTC or menstrual care items using their WEX Health card. Several things must occur before the debit cards (if applicable to your plan) will swipe for these newly eligible items. We have included a projection of that timeline below. This change will retro-back to 1/1/2020.
Until the debit card network is updated and fully functioning, and for any previously incurred expenses for 2020 that employees may have already had, Keystone will process those claims manually. Claims can be filed via the online employee portal, mobile app, or via email/fax/mail (manual claim forms can be obtained under the "forms" tab of this website).
We will continue to monitor any new developments on this daily, and post any necessary updates to this page. You can also visit FSAStore.com for additional information.