Last week, we told you about the Consolidated Appropriations Act, 2021 (CAA), and the provisions regarding Flexible Spending Accounts (FSAs). When Congress passed the bill, we thought it would be promptly signed into law by President Donald Trump. But then President Trump raised objections to the bill, signaling the possibility that it might not be signed into law at all. President Trump finally signed the bill into law on Sunday, December 27, 2020.
As described in more detail in our December 22nd eAlert titled “Stimulus Bill Provides New Relief for FSAs; Other Developments for Health & Welfare Plans,” the CAA includes provisions that give employers options to help employees with unspent health FSA and dependent care FSA balances at the end of the year. Employers can implement the changes now and then amend their plan documents later.
If you have questions about the changes permitted under the CAA, please contact Norbert Kugele, Stephanie Grant or any other member of Warner’s Employee Benefits/Executive Compensation Practice Group.
