Webinar to cover changes to NCFlex flexible spending accounts
Congress passed the Consolidated Appropriations Act of 2021 which included provisions that employers could adopt providing flexibility for flexible spending accounts.
NCFlex has reviewed these provisions and has provided a list of changes to flexible spending accounts for 2021 and 2022.
Healthcare Flexible Spending Accounts
- Temporarily allows the rollover of 100% of unused 2020 account balance.
- Temporarily allows the rollover funds to become available immediately.
- Temporarily allows the rollover of 100% of 2021 account balance into 2022.
Dependent Daycare Flexible Spending Accounts
- Temporarily allows to extend the grace period for 2020 through Dec. 31, 2021. This allows employees access to their unused 2020 contributions to be used for qualified expenses through Dec. 31, 2021.
- Temporarily extends the maximum age from age 12 to age 13, for dependent care children who aged out in the 2020 plan year. This allows the unused 2020 contributions to be used for children who turned 13 in 2020.
- Temporarily allows to extend the grace period for 2021 through Dec. 31, 2022. allowing unused 2021 contributions to be utilized in 2022.
NCFlex will be offering two webinars this week to discuss these changes. Please register for the date and time you can attend.
Contact: Keyona McNeill
Feb. 22, 2021