In response to COVID-19, the IRS released new relief affecting Flexible Spending Accounts (FSAs) and Dependent Care Assistance Programs (DCAPs).
Extended Claim Period
The claims period has been extended to apply unused amounts remaining in a Health FSA, or DCAP, for expenses incurred for those same qualified benefits, through December 31, 2020.
Participants are now able to make mid-year elections for Health FSAs and DCAPs.
For the first time since the Health FSA rollover feature was introduced in 2013, the rollover maximum is increasing from $500 to $550, and will be adjusted annually for inflation.
Expanded HDHP Coverage
A reminder that, prior to the deductible, High Deductible Health Plans (HDHPs) cover expenses related to COVID-19, and telehealth services retroactively to January 1, 2020.
More information can be found at: