Recently passed legislation allows Tulane to offer employees greater flexibility in using the remaining 2020 balances and making changes to 2021 elections for healthcare reimbursement account and dependent care reimbursement accounts. The legislation permits provisions (temporarily for 2021 & 2022 plan years) that allow employees to carry over the full amount of their unused 2020 balances in both their health and dependent care reimbursement accounts for payment of 2021 expenses.

Additional provisions of the Act gives greater flexibility in making prospective, mid-year changes to both of these accounts without a Qualifying Life Event, 2021 dependent care accounts can be increased and the age limit for eligible children increased.   Although the University is able to permit employees to stop future contributions, we cannot facilitate a return of any funds remaining in the accounts.  Therefore, to receive any funds deposited in the accounts you must submit qualified receipts.  

Special Limits for Highly Compensated Employees

Not all employees are eligible for increased annual limits for dependent care.

The IRS allows pre-tax contributions to Flexible Spending Accounts as long as the plan does not favor highly compensated employees (HCE).  The IRS defines HCEs as employees as who earns more than $130,000 are considered an HCE.  HCE Dependent Care participants will be limited (to pre-COVID limit of $5000 or if the University fails discrimination testing).  Discrimination testing is IRS required test the University runs to ensure benefits do not favor highly compensated employees.  

View a chart of the extended dates and changes here.  

After reviewing your current accounts and needs, if you have additional questions, or would like to make a prospective change in elections, please contact the Benefits Team at TUBenefits@tulane.edu.