IRS Changes - Extension of Certain Time Frames
At the end of April, new rules were put in place by the Federal government regarding certain time frames and extending those time frames due to COVID-19. In short, for certain time frames, the outbreak period from March 1 until 60 days after the announced end of the national emergency (TBD) must be disregarded. You can read more about these extensions in detail
HERE
.
What this means for NCFlex:
- If you have a new hire or employee with a QLE that occurred on or after March 1, missed their enrollment window, and you feel should have had more time to enroll, please submit an exception for NCFlex to consider allowing their changes past the 30 days. Please be specific in what changes they are requesting.
- The time for COBRA members to enroll and make payments will be extended, however, once enrolled, all premiums will still be owed retro back to the start date of their coverage. This COVID-19 COBRA letter has additional details.
- Employees will have additional time to file claims on NCFlex plans that normally have time restrictions on filing.
- The runout for submission of 2019 claims for HCFSA and DDCFSA will extend 60 days beyond the breakout period.
IRS Changes - NCFlex FSA plans
On May 12, the IRS issued two notices,
Notice 2020-29
and
Notice 2020-33
that affect Cafeteria Plan elections and Flexible Spending Accounts in response to the impact of COVID-19.
The following changes have been adopted by NCFlex and
can only be made on a prospective (go forward) basis
:
- Employees may choose to start, increase, decrease, or cancel their Health Care and/or Dependent Day Care elections for 2020 with no QLE.
- This must be requested via an exception by the HBR on behalf of the employee.
- If a reduction or cancellation is requested, the account can only be dropped down to the amount the employee has been reimbursed and/or contributed to the plan.
- If an FSA account is increased or added, funds will be allowed to be used for expenses retro back to January 1, 2020.
- Only one change (for each plan) for the 2020 plan year allowed due to COVID-19.
- Employees with 2019 DDCFSA accounts - the March 15 grace period to use these funds will be extended through December 31, 2020.
- The Health Care FSA Carry Forward account (also called the Roll Over) will be increased to $550 for the 2021 plan year.
- The Health Care FSA contribution amount for 2021 will be increased to $2,800.
Dental and Vision also effected by these notices:
- Employees may choose to change dental and/or vision tiers (such as Employee Only to Employee plus Family or vice versa).
- This change must be requested via an exception if not related to an existing QLE.