Bill Summary
This bill, known as the "COVID-19 Dependent Care Flexible Spending Arrangement Rollover Act of 2020", aims to allow individuals to roll over any unused funds in their dependent care flexible spending arrangements (FSA) from plan year 2020 to plan year 2021. This would provide individuals with additional financial flexibility during the COVID-19 pandemic, as many may not have been able to use all of their FSA funds due to disruptions in childcare services. The Secretary of the Treasury is required to issue regulations or guidance to implement this rollover option as soon as possible.
Possible Impacts
1. Provides financial relief for families: With the ability to rollover unused funds from a dependent care flexible spending arrangement into the following year, families may be able to save money and have more flexibility in their budget for childcare expenses. This could benefit families who have been financially impacted by the COVID-19 pandemic and may be struggling to cover the costs of dependent care.
2. Relieves pressure on employers: This legislation may also have a positive impact on employers, as it can help alleviate some of the financial burden they may be facing in providing dependent care benefits to their employees. By allowing the rollover of unused funds, employers may be able to save money and potentially avoid having to make cuts to their employee benefits.
3. Promotes overall well-being: By providing the option to rollover unused funds, this legislation may also indirectly benefit the mental and emotional well-being of individuals. With the financial pressure of dependent care expenses lessened, individuals may experience less stress and have more peace of mind, allowing them to focus on other aspects of their lives.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3972 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3972
To provide that the unused balance of a dependent care flexible
spending arrangement at the end of plan year 2020 may be rolled over to
the following plan year.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 17, 2020
Ms. Klobuchar (for herself and Mrs. Capito) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To provide that the unused balance of a dependent care flexible
spending arrangement at the end of plan year 2020 may be rolled over to
the following plan year.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``COVID-19 Dependent Care Flexible
Spending Arrangement Rollover Act of 2020''.
SEC. 2. ROLLOVER OF UNUSED BALANCE OF DEPENDENT CARE FLEXIBLE SPENDING
ARRANGEMENTS TO PLAN YEAR 2021.
As soon as practicable after the date of the enactment of this Act,
the Secretary of the Treasury (or the Secretary's delegate) shall issue
regulations or other guidance that permit the unused balance
(determined as of the end of plan year 2020) of any dependent care
flexible spending arrangement to be rolled over to plan year 2021.
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