Archive by tag: 2020-29Return
Some flexible spending account (FSA) participants have the unfortunate experience of forfeiting, or losing, unused funds from their Health Care FSA and/or Dependent Care FSA because they don’t understand their plan provisions. It is important for everyone involved in FSAs to understand which plan provisions provide time to file claims after the end of the plan year, such as runout, and when the plan includes optional features that provide more time to incur expenses, such as grace period and ro...
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Categories: Benefits in General, Health Care Reform, Compliance | Tags: Health Care FSA , Dependent Care FSA , Runout , Grace Period , Rollover , HSA eligibility , COVID Relief , 2020-29

IRS Releases Cafeteria Plan Relief

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On Tuesday, May 12th, the IRS released a pair of notices that affect cafeteria plans and flexible spending accounts (FSAs). These notices give employers the opportunity to add extended grace periods to FSAs, increase the maximum rollover amount on Health Care FSAs, and/or allow their participants to make mid-year cafeteria plan election changes if their needs change during the pandemic.
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Categories: Benefits in General, Compliance | Tags: IRS Notice 2020-29 , IRS Notice 2020-33 , Permitted Election Changes , Cafeteria Plans , Health Care FSA , Dependent Care FSA , Grace Period , Rollover , Amendments