The Internal Revenue Service has recently announced that, due to the pandemic, they would extend greater flexibility to employee benefit plans offering health flexible spending arrangements (FSAs) or dependent care assistance programs. Under the COVID-related Taxpayer Certainty and Disaster Tax Relief Act of 2020, these plans now have additional discretion in 2021 and 2022 to adjust their programs to help employees better meet the unanticipated consequences of the public health emergency.
Check out this article from the IRS to learn more about this change. Or contact us if you'd like to understand how this applies to your situation.
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