Alerts5.19.20
Relaxed Rules For Mid-year Election Changes And More Time To Use It Without Losing It For Some Flexible Spending Accounts
Highlights
Due to COVID-19, the IRS has relaxed mid-year election changes for employer-provided health coverage and flexible spending accounts during 2020
Flexible spending accounts with grace periods or plan years ending in 2020 may permit reimbursements for expenses incurred through Dec. 31, 2020
Implementing the relaxed rules could place financial burden on companies
The IRS recently relaxed the election change rules applicable to Internal Revenue Code Section 125 cafeteria plans (Section 125 Plans) for employer-sponsored health coverage, health flexible spending accounts and dependent care flexible spending accounts in IRS Notice 2020-29 (Notice).
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