The COVID-19 shelter-in-place orders across the nation have put individuals with Flexible Spending Accounts (FSAs) at risk of forfeiting money they have set aside for expenses like childcare and healthcare. This is because FSAs are required to be exhausted by the end of the calendar year. In response to this problem, Congressman Gary Palmer (AL-06) has authored a letter to leadership in the House and Senate requesting that legislation be passed so that people will not lose their hard-earned money because they are complying with stay-at-home orders. Congressman Palmer’s letter was signed by a bipartisan group of his colleagues. Palmer issued the following statement after sending the letter:
“Congress needs to protect individuals with FSAs rather than penalize them in these unprecedented times. Instead of being required to forfeit unused FSA dollars, they should be afforded temporary protection of this year’s funds, such as rollover to next year or the ability to withdraw their contributions. Planning ahead should not be punished, and I’m grateful for the bipartisan support gained so far on this issue.”
View Congressman Palmer’s letter to Speaker Nancy Pelosi, Leader McCarthy, Majority Leader McConnell, and Minority Leader Schumer here.