Flexible Spending Arrangements (FSAs) and Dependent Care Assistance Programs Update

Under the Taxpayer Certainty and Disaster Tax Relief Act of 2020, employee benefit plans offering FSAs or dependent care assistance programs have additional discretion in 2021 and 2022 to adjust their programs.

Notice 2021-15 gives employers the option to amend their plans to allow employees to elect and use these programs during the pandemic without forfeiting the amounts they have set aside, since employees are more likely to have unused amounts at the end of 2020 and 2021. Get details here.