In response to the COVID-19 pandemic, provisions were included in the Consolidated Appropriations Act (CAA) of 2021, signed into law on December 27, 2020, to provide relief to Flexible Spending Arrangement (FSA) participants. On February 18, 2021, the IRS issued guidance pertaining to the FSA provisions of the CAA. These documents provide for employers, at their discretion, to expand employees’ opportunities to make changes to their Health and Dependent Care (DepCare) FSAs, and allow flexibility in the use of funds contributed in 2020.
UC has chosen to adopt the provisions outlined below to support employees who were unable to obtain eligible services during the pandemic and whose unclaimed contributions may have been subject to forfeiture absent this relief.
- For detailed information, view the article: New Pandemic Relief for Flexible Spending Arrangement (FSA) Participants