Employers offering health FSAs and dependent care FSAs (DCAs) may allow (but are not required to allow) any remaining balances at the end of plan years ending in 2020 and 2021 to roll into the following plan year.
Employers offering health and DCAs may extend (but are not required to extend) grace periods for up to 12 months for plan years ending in 2020 and 2021.
Employers offering 2021 DCAs may increase (but are not required to increase) the annual maximum to $10,500.
Employers offering 2021 DCAs may allow (but are not required to allow) a one-time election change without qualified life event.
Employers offering health FSAs may allow (but are not required to allow) employees who terminate during 2020 or 2021 to spend down unspent balances through the end of the plan year. This is similar to what is already permitted for DCAs.
Employers offering dependent care FSAs may extend (but are not required to extend) the age limit for qualifying children from 13 to 14 for a plan year for which open enrollment ended before January 31, 2020, and for any unspent funds from that plan year that are available (either by rollover or grace period) to the employee during the following plan year.
Zenefits will provide a link to a page in the Section 125 portion of the Compliance link on the Company page within the Benefits Application.
The Company Admin will download a plan amendment template, fill out and sign it, and then upload it to the web (similar to the process executed for IRS 2020-29) for processing. To complete this process click the Benefits Administration App on your home page, navigate to the Company page from your main header, and select the Compliance link on the left hand menu. Once you have entered the Compliance page, you will find your plan amendment template in the Section 125 tile at the top of the page. Download the amendment, select any options (you may elect to choose any or all options available to you based on your current plan design) you would like, sign the document and upload it for processing.
If you need to review what selections you made after you've uploaded your signed amendment, you can do so by following these steps:
Once the signed document is uploaded, it will be sent to the the Zenefits Ops team for processing.
The Ops team will review the plan amendment to ensure the changes requested are in line with all requirements, and then will process the changes to your company setup. Once the plan changes have been made, they will be automatically sent to the processing system to update balances as necessary.
After all changes have been made in the processing system, you will receive a communication confirming completion of the request and they will be reflected accordingly in the Benefits Application and Mobile App.
Dependent Care FSA:
Your Consolidations and American Rescue Plan Act amendment may have been denied for one or more reasons during processing. Please review the reasons that an amendment would be denied below to see if your submission falls into one of those categories. If you do find that your amendment was submitted incorrectly, please download a new amendment from the Benefits website and resubmit your form to Zenefits.