Clarifying Guidance for Health FSA and DCAP Relief
February 26, 2021 View as Webpage
On Feb. 18, 2021, the IRS released Notice 2021-15 to clarify the application of temporary special rules for health flexible spending arrangements (FSAs) and dependent care assistance programs (DCAPs) provided under the Consolidated Appropriations Act, 2021 (CAA).

The Notice responds to unanticipated changes in the availability of certain medical and dependent care as a result of COVID-19, as employees are more likely to have unused health FSA or DCAP amounts at the end of 2020 and 2021. 

While the Notice also provides additional mid-year election change relief for Section 125 cafeteria plans generally, refer to the Compliance Bulletin in the link below which highlights the major clarifications regarding the health FSA and DCAP relief.
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