On February 18, 2021, the IRS released Notice 2021-15 (the “Notice”) interpreting section 214 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the “Act”), enacted as Division EE of the Consolidated Appropriations Act, 2021 (Dec. 27, 2020). Because the Act was signed into law with a mere four days left in 2020, but applies to FSAs with 2020 plan years, there had been much uncertainty and speculation as to how the IRS would interpret these provisions and whether IRS guidance would adopt stringent or complicated rules that limit the flexibility Congress seemed to intend. Fortunately, the IRS guidance is generally good news, as it presents a lot of plan design options for employers, clear rules for administrators and ultimately, if adopted by the employer, a path for FSA participants to avoid forfeiting their FSA dollars, even if those participants are also enrolled in Health Savings Accounts for 2021.