Changes passed into law this week in response to the COVID-19 pandemic may increase your carryover amounts for unused balances in the 2020 Medical/Dental Expense Account (MDEA) and Dependent Care Expense Account (DCEA). Here’s what you need to know:

Changes to our pre-tax programs

• MDEA Carryover: Increases the maximum allowable carryover amount from $550 to your full unused 2020 MDEA balance. This change is only for 2020.
• DCEA Carryover: Allows the full balance to carry over into 2021. Normally, under the pretax rules, a carryover is not allowed for the DCEA. This change is only for 2020.
• DCEA Eligible Dependent Age: DCEA reimbursements may be used for eligible dependents up to age 14 in 2020 and 2021. The age limit is 13 for 2022.

Am I eligible and what do I need to do?

• You are eligible for MDEA carryover if you have contributed your full annual election for 2020 and have unreimbursed 2020 MDEA contributions.
• You are eligible for DCEA carryover if you have unreimbursed 2020 DCEA contributions.
• You do not need to act; the carryover is automatic for eligible employees.
• The money carried over can be used for expenses incurred:
  • In 2020 if submitted for reimbursement on or before Sunday, February 28, 2021.
  • January 1, 2021, through December 31, 2021.
  • Your period for incurring eligible MDEA expenses may be earlier than December 31, 2021, if you terminate employment or lose eligibility and do not continue the MDEA.
  • Balances will carry over even if you did not elect an MDEA or DCEA for 2021.
• The deadline to submit 2020 MDEA and DCEA reimbursement requests has not changed, it is still Sunday, February 28, 2021.

Need more information? 121 Benefits will have more information on their website as it becomes available and you can call (612) 877-4321 or (800) 300-1672.