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  • Cafeteria Plans, FSAs, Dependent Care Assistance Programs More Flexible Due to COVID-19

     May 21 2020 -  BenefitsCOVID-19 (Coronavirus) -  Bianca Saad
     

    The Internal Revenue Service (IRS) released new guidance, Notice 2020-29, providing increased flexibility for individuals participating in section 125 cafeteria plans, health flexible spending arrangements (FSAs) and dependent care assistance programs (DCAPs) to make mid-year changes.

    Typically, participants are rarely permitted to make mid-year changes, but the guidance provides certain flexibility, including election changes and an extended claims period. A different IRS notice increases the carryover limit for unused FSA funds.  Read More