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Certainty Creates Incentive for Increasing DCAP Limit
GraydonLink to more items from this source
[Guidance Overview]
May 12, 2021

"Employers that were hesitant to increase their plan's DCAP limit for 2021 to avoid unexpected tax consequences for their employees can lay those fears to rest with [the issuance of IRS Notice 2021-26].... [P]lan amendments must be adopted by the last day of the plan year, although employers should act much sooner if they wish to implement the increased benefit for 2021."

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