New FSA Rule Changes for COVID Relief

Here is a noteworthy update for readers with a flexible spending account (FSA) – the Taxpayer Certainty and Disaster Tax Relief Act of 2020, signed into law by Congress on Dec. 27, 2020 as a COVID relief measure, will potentially give you some temporary flexibility on FSA carryover funds and how you use your funds in 2021 and 2022. The IRS recently clarified the new FSA rule changes for 2021 and 2022: Provides flexibility for the carryover of unused amounts from the 2020 and 2021 plan years; Provides flexibility to extend the permissible period for incurring claims for plan years ending...

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