The COVID-19 pandemic has wreaked havoc on how many employees intended to use their health coverage, and particularly flexible spending accounts (“FSAs”) in 2020 and 2021. Thankfully, the Consolidated Appropriations Act (“Act”) relaxed some of the rules around FSAs and cafeteria plans, providing the opportunity for employers to offer some relief to employees. On February 18, the Department of the Treasury and IRS came out with important guidance regarding the new rules in the Act, and also extended relief allowing an employer to let employees make prospective health, dental, and vision coverage election changes.
This webinar will provide an overview of the recent IRS guidance, and the enhanced FSA features that the Act allows employers to add to a cafeteria plan, including rollovers, grace period extensions, extended reimbursement opportunities for health and dependent care FSAs, and relaxed election rules. We will also address practical considerations for employers who are considering whether to make these changes.