Urgent News Regarding Your FSA’s! COVID Relief Bill’s Immediate Impact
The new COVID relief bill, which was signed into law this week, includes a lot of things we will all be combing through over the next few weeks. Including, of course, during our annual New Laws Webinar coming up on January 12th!
However, we think it’s important for all of our clients who sponsor FSA’s and /or DCAP’s to know a few hot button items we encourage you to share with employees *right now!*:
- DCAP/FSA Carryover: Plans may permit a FSA or DCAP to carryover all unused amounts from 2020 to 2021 and from 2021 to 2022;
- DCAP/FSA Grace Period: Plans may permit a 12-month grace period for unused benefits for plan years ending in 2020 or 2021;
- FSA Spenddown: The option for plans to allow medical FSA participants who terminate during the 2020 or 2021 plan year to spend down their unused balances for expenses incurred through the end of the plan year in which the termination occurred;
- DCAP Age Increase: The maximum age of eligible dependents is increased by one year;
- DCAP/FSA Election Changes: The option for plans to allow a prospective change in election amounts for plan years ending in 2021 without a corresponding change in status event.
From our early interpretation, it appears these will be group level choices. Please Contact your United Agencies Representative if you have additional questions on how you might best roll this out to your employees.
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