Flexible Spending Accounts
President Donald Trump signed a new stimulus bill into law on December 27, 2020 which will provide direct payments to eligible individuals and loans to small businesses, among other things. Among those other things are temporary and optional changes that employers can implement to Health and Dependent Care Flexible Spending Accounts (Health FSAs and Dependent Care FSAs).
When talking about Health Flexible Spending Accounts (FSAs), you may hear the terms carryover, grace period and run-out period, but what do they mean and how do they differ? Here are some simple explanations of each term.
The Internal Revenue Service (IRS) recently released Notice 2020-29 and Notice 2020-33 which provide substantial changes to Cafeteria Plans, Health Flexible Spending Accounts (Health FSAs) and Dependent Care Assistance Programs (commonly referred to as Dependent Care FSAs).
When talking about Health Flexible Spending Accounts (FSAs), you may hear the terms carryover, grace period and run-out period, but what do they mean and how do they differ? Here are some simple explanations of each term.
Time is running out to spend your 2018 FSA funds. In most cases, unless your plan has carryover or the Grace Period, you’ve only got until 12/31 to spend any remaining balance. By the time the ball drops on New Year’s Eve, any money left in your account will be forfeited.
On November 15th, the IRS released Revenue Procedure 2018-57 which includes inflation adjustments for certain employee benefit programs and other items.
- Make the tax code simple, fair and easy to understand.
- Give American workers a pay raise by allowing them to keep more of their paychecks.
- Bring back trillions of dollars that are currently kept offshore to reinvest in the American economy.
IRS Revenue Procedure 2017-58 was released last week. It includes a number of inflation adjustments to various benefits and other items for 2018 including the following for Consumer-Driven Accounts:
Benefits Buzz
Enter Your Email
Join Our Mailing List
Benefits Buzz RSS Feed
