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IRS Clarifies Aspects of Recent FSA and Cafeteria Plan Accommodations (PDF)
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[Guidance Overview]
Feb. 24, 2021

Updated Apr. 22, 2021. "The CAA's accommodations blur the lines between a grace period and carryover, as the law allows unlimited carryovers (more than just $550) and up to 12-month grace periods. So, is an employer better off with a grace period or a carryover provision, and does it really make any difference for leftover balances from the 2020 and 2021 FSA plan years?"

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