Congressman Wenstrup’s legislation prevents Americans from being penalized, due to the coronavirus, for accessing money they specifically saved to fund care for themselves and their families.
August 5, 2020
The Honorable Brad Wenstrup
2nd Congressional District of Ohio
2419 Rayburn House Office Building
Washington, DC 20515
Dear Congressman Wenstrup,
On behalf of the 2.2 million members of AMAC – Association of Mature American Citizens, including over 5500 residing in OH-02, I write to offer our support for H.R. 7008, the Family Savings Flexibility Act.
The coronavirus pandemic has disrupted the lives of Americans in many ways. Specifically, many have delayed or cancelled scheduled health care visits for procedures for themselves and childcare for family members due to the risks associated with COVID-19. Consequently, the funds in Flexible Spending Accounts (FSA) and Dependent Care Flexible Spending Accounts (DCFSA) that were designated for these visits went unused. Now more than ever, Americans deserve tax relief and flexibility to access these funds to pursue care for themselves and their families as the country emerges from the shutdown.
H.R. 7008 temporarily adjusts the rules for FSAs and DCFSAs to account for COVID-19 related cancellations and delays in three ways:
1. It increases to $2,750 the maximum amount of unused benefits or contributions remaining in a health flexible or dependent care spending arrangement that may be carried over from the 2020 to the 2021 plan year 2. It increases the maximum contribution amount for health savings accounts (HSA)
3. It increases the exclusion from employee gross income of employer-paid dependent care assistance
AMAC has long been supportive of free-market spending alternatives that put people in control of their own healthcare and childcare for their loved ones. Encountering this pandemic and its far-reaching effects should not be reasons to penalize them for accessing the money they specifically saved to fund care for their families.
Thank you, Congressman Wenstrup, for sponsoring bipartisan legislation that provides some financial relief and flexibility during these uncertain times of the coronavirus. AMAC thanks you for your concern and is pleased to offer our organization’s full support for the H.R. 7008, the Family Savings Flexibility Act.
Sincerely,
Bob Carlstrom
President,
AMAC Action
Hello,
I am very happy to see something potentially being done about this! Although my company does allow a three month grace period into the following year, unfortunately, I once lost $300 dollars because I missed the deadline, and they don’t allow rollovers. With that being said, my current situation is that I was terminated from my job on 7/1/2020 due to Covid-19 and my account has money in it that I am potentially going to lose.
My severance package said that any money that I had in the account had to be used by 7/1/2020 (the day I was terminated). How could I have possibly used the money when I didn’t even know I was being terminated? After going back and forth with HR and the FSA company, come to find out, I had until 7/24/2020 to use it, but no one told me! By the time I found out, it was past that date, so I’m trying to get them to give me a grace period. In addition to already having money in the account that I may not be able to use, my company took two extra payments out of my check, that they shouldn’t have, and deposited it into my account!! Now, I have even more money that I might not be able to use.
I kept thinking that I wish I could voice my complaint, so it must have been meant for me to see this. I even thought about trying to get in touch with the president because this is totally wrong. The funny thing is, I just renewed my membership and this subject popped up. I hope this bill will pass so myself and other can use our hard-earned money.
Thanks for listening!
Hello,
I am very happy to see something potentially being done about this! Although my company does allow a three month grace period into the following year, unfortunately, I once lost $300 dollars because I missed the deadline, and they don’t allow rollovers. With that being said, my current situation is that I was terminated from my job on 7/1/2020 due to Covid-19 and my account has money in it that I am potentially going to lose.
My severance package said that any money that I had in the account had to be used by 7/1/2020 (the day I was terminated). How could I have possibly used the money when I didn’t even know I was being terminated? After going back and forth with HR and the FSA company, come to find out, I had until 7/24/2020 to use it, but no one told me! By the time I found out, it was past that date, so I’m trying to get them to give me a grace period. In addition to already having money in the account that I may not be able to use, my company took two extra payments out of my check, that they shouldn’t have, and deposited it into my account!! Now, I have even more money that I might not be able to use.
I kept thinking that I wish I could voice my complaint, so it must have been meant for me to see this. I even thought about trying to get in touch with the president because this is totally wrong. The funny thing is, I just renewed my membership and this subject popped up. I hope this bill will pass so myself and other can use our hard-earned money.
Thanks for listening!