4/13/21

Putting it All Together - Cafeteria Plan and Flexible Spending Account Options in 2020 and 2021

Related Practices

Attorneys & Professionals

There has been a whirlwind of new legislation and guidance related to cafeteria plans and flexible spending accounts (FSAs), beginning with the Coronavirus Aid, Relief and Economic Security (CARES) Act in March 2020 through Internal Revenue Service (IRS) guidance issued the end of March 2021. This new legislation and IRS guidance is designed to give employees more flexibility to make election changes and to use FSA funds that otherwise would have to be forfeited. This alert summarizes the guidance over the past year.

OTC DRUGS AND MENSTRUAL CARE PRODUCTS

CARES Act and IRS Notice 2021-15:

Pre-CARES Act:

PERSONAL PROTECTIVE EQUIPMENT

IRS Announcement 2021-7:

Pre-IRS Announcement 2021-7:

2020 FSA CHANGES

IRS Notice 2020-29:

Pre-IRS Notice 2020-29:

 2021 FSA ELECTION CHANGES

Consolidated Appropriations Act, 2021 (CAA) and IRS Notice 2021-15:

Pre-CAA:

FSA CARRYOVERS – 2020 to 2021 and 2021 to 2022

CAA and IRS Notice 2021-15:

Pre-CAA:

FSA GRACE PERIODS – 2020 to 2021 and 2021 to 2022

CAA and IRS Notice 2021-15:

Pre-CAA:

DEPENDENT CARE FSA REIMBURSEMENT FOR CARE OF 13 YEAR OLD CHILD

CAA and IRS Notice 2021-15:

Pre-CAA:

HEALTH FSA SPEND DOWN

CAA and IRS Notice 2021-15:

Pre-CAA:

2021 DEPENDENT CARE FSA ANNUAL LIMIT INCREASE

American Rescue Plan Act of 2021 (ARP):

Pre-ARP:

2020 MID-YEAR GROUP HEALTH PLAN ELECTION CHANGES

IRS Notice 2020-29:

Pre-IRS Notice 2020-29:

2021 MID-YEAR GROUP HEALTH PLAN ELECTION CHANGES

IRS Notice 2021-15:

Pre-IRS Notice 2021-15:

 WHAT STEPS DO EMPLOYERS NEED TO TAKE NOW?

Please contact your Vorys attorney if you have questions regarding any of the changes discussed in this alert.