IRS Guidance on Temporary Special Rules for FSAs
On February 28, 2021, the IRS released clarification to special rules for Section 125 plans and health and dependent care FSAs. Notice 2021-15 is intended to clarify the application of special rules that were outlined in the Consolidated Appropriations Act of 2021 (signed into law in late December 2020) which, among other things, gave employers the option to make temporary adjustments to FSAs. The clarification provided detailed information on the CAA rules and examples for employers. Benefits Partners/NFP gives a good overview of the Notice (under March 2, 2021, click on “expand” under the headline about this topic).