Subscribe Now!
Free Daily News, Jobs, Webcasts, Discussions
Display and Distribute
Your Job Openings
COVID-19 News
COVID-19 Webcasts

Featured Jobs

DC Plan Administrator

Retirement, LLC
(Telecommute / Oklahoma City OK / Sioux Falls SD)

Retirement, LLC logo

Manager/Supervisor of Benefits and Payroll Compensation

Virginia Farm Bureau
(Richmond VA)

Virginia Farm Bureau logo

DB/DC Plan Consultant

Small NY Actuarial TPA Firm
(Telecommute / CT / NJ / NY)

Legal Director

Pension Rights Center
(Telecommute / Washington DC)

Pension Rights Center logo

Retirement Plan Consultant

Jocelyn Pension Consulting
(Telecommute / Boulder CO / CA)

Jocelyn Pension Consulting logo

Retirement Plan Administrator

Prime Benefits
(Telecommute / Baltimore MD)

Prime Benefits logo

Retirement Plan Administrator

Premier Plan Consultants
(Telecommute / San Diego CA)

Premier Plan Consultants logo

Retirement Plan Administrator

Howard Simon & Associates
(Deerfield IL)

Howard Simon & Associates logo

Investment Advisor

SWBC Retirement Plan Services
(Austin TX)

SWBC Retirement Plan Services logo

Retirement Plan Administration Assistant

Jordan & Associates Retirement Services
(Santa Rosa CA)

Jordan & Associates Retirement Services logo

Retirement Plan Administrator

Jordan & Associates Retirement Services
(Telecommute / Santa Rosa CA)

Jordan & Associates Retirement Services logo

Sr. Plan Administrator and Implementation Coordinator

Advanced Benefits Consulting
(Telecommute / Saint Louis MO)

Advanced Benefits Consulting logo

Defined Contribution Plan Administrator

Pension Investors Corp of Orlando Inc
(Altamonte Springs FL)

Pension Investors Corp of Orlando Inc logo

Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

View Coronavirus (COVID-19) News and Resources

<< Older News  |  March 8, 2021

News

All News > Cafeteria Plans

Get this news and more in our free daily email newsletters.
Health & Welfare Benefits Update, March 2021 (PDF)
Alston & Bird Link to more items from this source
[Guidance Overview]
Mar. 5, 2021

21 presentation slides. Topics: [1] Legislative update; [2] Outbreak period update; [3] COBRA subsidy: a deeper dive; [4] Notice 2021-15: FSA and election change relief; [5] Further agency guidance on COVID testing and vaccinations.

Tags: COBRA  •  Cafeteria Plans  •  Coronavirus (COVID-19)  •  Dependent Care  •  Health Plan Design

Flexible Spending Accounts: IRS Guidance on Permissive Changes (PDF)
Trucker Huss Link to more items from this source
[Guidance Overview]
Mar. 4, 2021

42 presentation slides. "If a company does decide to amend for these FSA provisions, it will first need to confirm ... that the TPA can administer [them] before communicating [the changes] to its employees.... [T]he CAA and [Notice 2021-15] allow additional time for companies to adopt formal plan amendments"

Tags: Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Dependent Care

IRS Issues Guidance on Consolidated Appropriations Act FSA Forfeiture Relief
Thompson Hine Link to more items from this source
[Guidance Overview]
Mar. 4, 2021

"[A table] shows the key differences (and in some cases, similarities) between the standard cafeteria plan rules and the [relief provided in Notice 2021-15]."

Tags: Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Coronavirus (COVID-19)  •  Dependent Care

IRS Provides Further Flexibility for Flexible Spending Accounts
Foley & Lardner LLP Link to more items from this source
[Guidance Overview]
Mar. 3, 2021

"If I allow a rollover or grace period, then how do I also help employees preserve their HSA eligibility? ... What kind of prospective changes am I allowed to offer my employees? ... What else should employers do?"

Tags: Cafeteria Plans  •  Dependent Care  •  HSAs  •  Health Plan Design

IRS Provides Flexibility for Employers with Cafeteria Plans
Bradley Link to more items from this source
[Guidance Overview]
Mar. 2, 2021

"This article highlights the 20 key takeaways from Notice 2021-15 for employers with cafeteria plans.... Carryovers and grace periods ... Eligibility to contribute to an HSA ... Mid-year election changes ... Post-participation Health FSA reimbursements"

Tags: Cafeteria Plans  •  Dependent Care  •  HSAs  •  Health Plan Design

IRS Gymnastics with Code Section 125 for FSAs: Notice 2021-15
Morgan Lewis Link to more items from this source
[Guidance Overview]
Mar. 1, 2021

"While the Notice clarifies the permissible opportunities available under the Act, the IRS twists long established rules under Section 125 of the Code ... The Notice offers up a cornucopia of additional opportunities that create administrative burdens and may be too costly for a third-party administrator to implement given the emphasis in the Notice that these permissible opportunities are all temporary in duration."

Tags: Cafeteria Plans  •  Dependent Care  •  Health Plan Administration  •  Health Plan Design

COVID-19 Deadline Extensions -- No More Time Outs But No Single Deadline Either
Jackson Lewis P.C. Link to more items from this source
[Guidance Overview]
Mar. 1, 2021

"[Disaster Relief Notice 2020-01] acknowledges that the agencies understand and appreciate the complications this latest guidance creates for plan administrators to immediately restart the clock of daily COBRA, HIPAA, and other deadlines and for individuals who now must immediately catch up monthly COBRA premium obligations to maintain health insurance under the employer's plan ... To be considered as acting in 'good faith and with reasonable diligence,' [here is a list of steps employers should take]."

Tags: COBRA  •  Cafeteria Plans  •  Coronavirus (COVID-19)  •  Dependent Care  •  HIPAA

COVID-19 Relief for Employees Who Participate in Flexible Spending Accounts
Stradley Ronon Link to more items from this source
[Guidance Overview]
Mar. 1, 2021

"The centerpiece ... is to combine the grace period and carryover rules. Conceptually there is no distinction between the grace period and carryover for PYs 2020 and 2021 PYs. In order to avoid confusion, the IRS refers to the period as the 'temporary extension period.' An employer has the discretion to adopt all, some or none of the opportunities presented by TCDRA and Notice 2021-15."

Tags: Cafeteria Plans  •  Dependent Care  •  Health Plan Administration  •  Health Plan Design

IRS Guidance Makes FSAs More Flexible
Groom Law Group Link to more items from this source
[Guidance Overview]
Feb. 26, 2021

"For plan years ending in 2021, an employer can permit an employee to change his/her FSA election mid-plan year, regardless of reason.... [T]he employer can allow the employee to receive reimbursements for expenses incurred starting on January 1, 2021. This is a significant departure from the general FSA rules[.]"

Tags: Cafeteria Plans  •  Health Plan Administration

IRS Clarifies FSA Relief in CAA, Provides More Flexibility for Cafeteria Plan Elections
Mercer Link to more items from this source
[Guidance Overview]
Feb. 26, 2021

"In this most recent notice, the IRS broadened the relief ... so that an employer may allow election changes for all pre-tax health benefits in the 2021 plan year without a qualifying reason. The rules retain the written attestation requirement of other coverage for revoking medical coverage."

Tags: Cafeteria Plans  •  Coronavirus (COVID-19)  •  Dependent Care  •  Health Plan Administration  •  Health Plan Design

IRS Provides Additional COVID-19 Relief for Cafeteria Plans
McDermott Will & Emery Link to more items from this source
[Guidance Overview]
Feb. 25, 2021

"The guidance provides for a lot of flexibility for employers ... however, the IRS holds firm on the idea that a plan may not offer a grace period and a carryover.... Employers will want to provide notice to employees of any modifications made to the plan under this guidance[.]"

Tags: Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Dependent Care  •  HSAs  •  Health Plan Design

How to Provide Relief to Your FSA Participants Without Impacting Their HSA Eligibility
Graydon Link to more items from this source
[Guidance Overview]
Feb. 25, 2021

"All of these options add administrative burden to employers. So if you are considering adding or expanding a carryover or grace period provision, ... [review] your 2020 health FSA balances to determine if there are that many participants that will even benefit from the relief."

Tags: Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  HSAs

Editor's Pick IRS Clarifies Aspects of Recent FSA and Cafeteria Plan Accommodations
Lockton Link to more items from this source
[Guidance Overview]
Feb. 24, 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?"

Tags: Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Dependent Care

Editor's Pick IRS Provides Clarity Regarding FSA Relief Available Under Consolidated Appropriations Act
Verrill Dana LLP Link to more items from this source
[Guidance Overview]
Feb. 23, 2021

"IRS Notice 2021-15 ... provides welcome clarity regarding several of the lingering questions, as well as some additional relief and guidance.... [This article includes] common questions from employers regarding the CAA relief and a summary of the answers provided by IRS Notice 2021-15."

Tags: Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Dependent Care

Editor's Pick IRS Clarifies FSA and Other Relief
HUB International Link to more items from this source
[Guidance Overview]
Feb. 23, 2021

"[T]he most visible change is significantly broader flexibility for both health care and dependent care FSAs.... [Notice 2021-15] reaffirms that these enhanced carryovers and grace periods will not cause a health FSA lose 'excepted benefit' status. This means a health FSA will not have to comply with all the [ACA] mandates as a result of adopting one of these provisions."

Tags: Cafeteria Plans  •  Dependent Care  •  HSAs  •  Health Plan Design

IRS Provides New Guidance on Health FSAs and Dependent Care Assistance Programs
RSM US Link to more items from this source
[Guidance Overview]
Feb. 23, 2021

"New Notice 2021-15 clarifies the latest temporary rules regarding health FSAs and DCAPS included in the Act.... [E]mployers that choose to adopt any of the 2021 changes must formally amend their plans to do so. The amendment can be retroactive, but must be adopted not later than December 31 of the first calendar year beginning after the end of the plan year in which the amendment is effective."

Tags: Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Dependent Care  •  Health Plan Administration

IRS Releases Guidance on FSA Flexibility Under the CAA
Miller Johnson Link to more items from this source
[Guidance Overview]
Feb. 22, 2021

"Notice 2021-15 allows retroactive amendments to health FSAs and HRAs to cover OTC medicines and drugs, and menstrual care products as of January 1, 2020.... Notice 2021-15 also clarifies that the spend down feature under a health FSA does not relieve the employer of its requirement to offer COBRA continuation coverage under the health FSA."

Tags: COBRA  •  Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Dependent Care

Editor's Pick FSA Issues Resolved in New IRS Guidance
ABD Insurance & Financial Services Link to more items from this source
[Guidance Overview]
Feb. 22, 2021

"[I]ssues addressed by the IRS in [Notice 2021-15]: ... [1] Carryover amounts do not affect FSA contribution limits ... [2] HSA eligibility ... [3] Limiting health FSA spend down access to YTD contributions ... [4] Prospective election change relief not limited to FSAs ... [5] Limiting election reductions to amounts already reimbursed ... [6] Cafeteria plan retroactive amendment deadline ... [7] The odd dependent care FSA age limit increase to age 14 in 2020 ... [8] Employer-imposed restrictions on relief permitted."

Tags: Cafeteria Plans  •  Dependent Care  •  HSAs  •  Health Plan Administration

Text of IRS Notice 2021-15: Additional Relief for Coronavirus Disease (COVID-19) Under § 125 Cafeteria Plans (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Feb. 18, 2021

34 pages. "This notice clarifies the application of Section 214 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, recently enacted as Division EE of the Consolidated Appropriations Act, 2021 ... which provides temporary special rules for health flexible spending arrangements (health FSAs) and dependent care assistance programs under Section 125 cafeteria plans.... This notice also provides additional relief with respect to mid-year elections for plan years ending in 2021.... The notice also provides relief with respect to the effective date of amendments to Section 125 cafeteria plans and health reimbursement arrangements (HRAs) to implement the expansion of allowed expenses for health FSAs and HRAs by the [CARES Act] to include over-the-counter drugs without prescriptions and menstrual care products."

Tags: CARES Act  •  Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Health Plan Administration  •  Health Plan Design

Opt-Out Arrangements for Group Health Plans: Employer Compliance Considerations (PDF)
Cowden Associates, Inc. Link to more items from this source
Feb. 3, 2021

"[1] If an opt-out is offered in combination with a fully insured plan, check with the carrier to confirm that the opt-out payment does not violate any contractual agreement with the carrier; [2] If an opt-out arrangement is offered in combination with a self-insured plan, be aware of potential 105(h) nondiscrimination issues ... [3] Make sure that offering an opt-out does not ... lead to lower plan participation overall if that is not your intended outcome; [4] Ensure that the opt-out payment is offered under a Section 125 plan and amend the written Section 125 plan accordingly."

Tags: Cafeteria Plans  •  Health Plan Administration  •  Health Plan Design

Flexibility for Flex Accounts: Congress Provides New Relief to Employees
Winstead PC Link to more items from this source
[Guidance Overview]
Feb. 1, 2021

"Employers who implement these changes will likely experience higher costs due to reduced forfeitures and changes in plan administration. Additionally, changes to health FSAa could adversely affect the participant's eligibility to contribute (or receive contributions) to a health savings account."

Tags: Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Health Plan Design

2021 Flexible Spending Account Relief in the Consolidated Appropriations Act, 2021
Holland & Hart LLP Link to more items from this source
[Guidance Overview]
Jan. 25, 2021

"Absent further guidance, the uniform coverage rule may allow an employee to make a mid-year election in 2021 (as part of the CAA relief) to contribute less to the FSA than the level of reimbursement the employee has received from the FSA for the year, creating an incentive for employees to reduce their elections. The IRS granted uniform coverage rule relief this past summer with respect to 2020 mid-year election changes, so it is possible that the IRS may grant employers some flexibility to prevent this result this time around as well."

Tags: Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Health Plan Administration

Top Considerations for Adopting FSA Funding Relief
Society for Human Resource Management [SHRM]; membership may be required to view article Link to more items from this source
[Guidance Overview]
Jan. 19, 2021

"Employers have flexibility to implement and tailor one or more of the available options.... Some administrators have adopted the rules unless employers opt out of them. Pay attention to communications from your administrators to ensure you do not lose flexibility ... [1] Carryover eligibility.... [2] Amount.... [3] HSA eligibility.... [4] Ordering rules.... [5] Aged-out dependents.... [6] COBRA considerations.... [7] Fiscal year plans.... [8] Employee communications.... [9] Plan amendments."

Tags: Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Dependent Care  •  Health Plan Design

Overview of the Consolidated Appropriations Act's Impact on Employee Benefit Plans
Mintz Link to more items from this source
[Guidance Overview]
Jan. 14, 2021

"[This article] is an overview of the law's key provisions affecting pension, welfare and fringe benefit programs."

Tags: Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Dependent Care  •  Health Plan Administration  •  Health Plan Design  •  Retirement Plan Administration  •  Retirement Plan Design

Major Employee Benefit Reforms Included in COVID-19 Stimulus Package
Spencer Fane Link to more items from this source
[Guidance Overview]
Jan. 14, 2021

"[T]his legislation makes the most significant changes to health plans since the [ACA], offers employers and employees additional flexibility for cafeteria plan benefits, and provides additional retirement plan relief.... Action steps for employers include: [1] Coordinate with insurers and/or third-party administrators of health plans to ensure compliance with the surprise billing rules; [2] Request ERISA Section 408(b)(2) disclosures from health plan brokers and consultants, and review those disclosures for reasonableness ... [3] Decide whether to offer some or all of the cafeteria plan and FSA relief ... [4] Evaluate whether layoffs implemented during the pandemic caused a partial plan termination; and [5] Decide whether to offer a qualified disaster distribution or loan option."

Tags: Cafeteria Plans  •  Consolidated Appropriations Act, 2021   •  Dependent Care  •  Health Plan Design  •  Retirement Plan Administration


<< Older News  |  March 8, 2021

© 2021 BenefitsLink.com, Inc.