New IRS guidance offers flexibility on carrying over FSA funds

Posted On: Feb. 22, 2021 9:43 AM CST

The Internal Revenue Service has issued new guidance that offers more flexibility to carry over unused Flexible Spending Accounts and dependent care assistance program amounts from 2020 and 2021 plan years, BenefitsPRO reports. Furthermore, the guidance allows extensions of the permissible period for incurring claims for plan years ending 2020 and 2021; provides flexibility to adopt a special rule pertaining to post-termination reimbursements from health FSAs, and much more.