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 change has been adopted by NCFlex and
can only be made on a prospective (go forward) basis
:
As mentioned in previous newsletters, making changes to your Dependent Day Care FSA is allowed when you have a day care change - this is a qualifying life event (QLE). However, now you may choose to start, increase, decrease, or cancel your Health Care and/or Dependent Day Care elections for 2020 with no QLE.
Please note the following about this change:
- You must contact your Health Benefits Rep (HBR) or HR department to make a change - they will in turn reach out to us at NCFlex.
- If a reduction or cancellation is requested, your account cannot be dropped below what you have already been reimbursed and/or payroll deducted.
- If a Health Care FSA account is increased or added, funds will be allowed to be used for expenses back to January 1, 2020, or back to the first of the month after your hire date, if hired after January 1.
- Only one change (for each plan) for the 2020 plan year will be allowed due to COVID-19, unless you experience a qualifying life event.
- Changes to your FSA account due to COVID-19 must be requested by September 30, 2020.
In addition to the above change, the following have also been updated for the 2020 plan year:
- The deadline to submit 2019 Health Care FSA (HCFSA) and 2019 Dependent Day Care FSA (DDCFSA) has been extended. Originally the extension ended May 31, 2020, however, the deadline will now be 60 days past the end of the breakout period (the announcement of the end of the national emergency) which is TBD.
- The Health Care FSA Carry Forward account (also called the Roll Over) will be increased to $550 going into the 2021 plan year.
Still have questions? Please contact your HR department or NCFlex at
[email protected]
.
