That makes total sense to me. I have the deadline of 3/31/21 to spend the 2021 $5000 FSA, will see if any policy change before that.
It is now clear I have 2 choices:
1. Spend 2021 $5000 now and everything is clear.
2. Keep the 2021 FSA to use in 2022 and there might be quite a few uncertainties. Worst situation is put $5000 back to taxable income, but still get a bit more tax benefit since my federal+state tax rate is still less than 50%.
Is there possibility that all the $10000 is tax free since they're allowed in my FSA? This is my first time to see Dependent Care FSA rollover.
