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IRS Clarifies Pandemic-Related Relief for Dependent Care FSAs
Faegre DrinkerLink to more items from this source
[Guidance Overview]
Mar. 26, 2021

"Employers that wish to provide the Relief will need to choose between providing the carryover opportunity or an extended Grace Period because the Notice confirms that a dependent care FSA may not have both.... [T]he extended Grace Period would allow employees who have ceased participation to continue to incur claims until the end of the next plan year."

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