What are the changes to the IRS Guidelines for the FlexBen products?
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.
Thank you for the feedback!