The Consolidated Appropriations Act, 2021, H.R. 133 (the “
CAA”) signed into law by the President on December 27, 2020 and a variety of IRS guidance issued in the first week of 2021 mean that employers entering the new year have lots of COVID-19 relief to digest. This Alert is the first part of our three-part series focusing on COVID-related changes affecting employers and their employee benefit plans. Here we focus on flexible spending accounts.
FSAs Can Allow Longer Carryovers & Grace Periods
Plan sponsors may choose to amend their flexible spending account (“
FSA”) plans to allow employees to carry over
any unused FSA balances from the 2020 plan year into the 2021 plan year and to carry over