To help ring in the new year and to ease the ongoing financial impacts of COVID-19, Flexible Spending Accounts (FSA) were recently awarded temporary relief as part of the passage of The Consolidated Appropriations Act of 2021 (signed into law on December 27th 2020).
This bill, which also expanded revisions to the Paycheck Protection Program and many other COVID-19 related programs, relaxes the rules for FSA Medical and FSA Dependent Care Accounts, specifically for caps on carryovers of unused balances.
For a detailed list of new relaxed rules, please visit the following to resources:
George Petersen Insurance Agency – Relief for Flexible Spending Arrangements
IRS – Flexible Spending Relief
Disclaimer: These materials are provided for informational purposes only and are not intended as legal or tax advice. Readers of the IBS Blog should contact their legal or tax professionals to discuss how these matters relate to their individual circumstances.