IRS Notice 2021-15 Provides Guidance on COVID-Related Cafeteria Plan Flexibility
… of the first calendar year beginning after the end of the plan year in which the amendment is effective. On February 18, 2021, the IRS released IRS Notice 2021-15 guidance that clarifies items in the recently passed Consolidated Appropriations Act of 2021 (CAA) permitting flexibility for health flexible spending arrangements (FSAs), dependent care account plans (DCAPs) and cafeteria plan election change rules. None of these changes are required. Employers have the option to implement some or all of the changes, or employers could choose not to change their plans at all. For employers who are willing to allow some …
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