Group Market News
Published January 11, 2021
On Sunday, December 27, 2020, President Trump signed into law the Consolidated Appropriations Act 2021, a massive bill to fund the government that includes several provisions related to COVID-19 relief.
This act provides temporary provisions for health care and dependent care flexible spending account (FSA) plans, which may impact employers and their benefits plans. Under these provisions, employers are allowed, but not required to amend their cafeteria plans, and will be given ample time to do so. Amendments must be made by the last day of the calendar year following the plan year in which the amendment is effective. For example, calendar year 2020 plan amendments must be adopted on or before December 31, 2021.
Both healthcare and dependent care FSAs have extension opportunities. To learn more about these provisions, and what you may be able to do, visit the ConnectYourCare site.