New Temp Rules for Health and Dependent Care FSAs

From: Benefits

Video: https://gbewbenefits.com/wp-content/uploads/2020/12/New-Temp-Rules-for-Health-and-Dependent-Care-FSAs-1.mp4

Legal Update: New Temp Rules for Health and Dependent Care FSAs

On Dec. 27, 2020, a bill that includes temporary special rules for health and dependent care flexible spending accounts (FSAs) was signed into law.

• For plan years ending in 2020 and 2021, employees may carry over unused amounts remaining in these FSAs to the next plan year.
  
• Employers can also extend grace period for plan years ending in 2020 and 2021, to 12 months after the end of such plan year.
  
• The bill also addresses prospective election changes to FSA contribution amounts for 2021.

Employers can retroactively adopt plan amendments, if requirements are met.