The Consolidated Appropriations Act, 2021, provided significant relief to participants in these plans. For example, unused amounts they contributed to a medical FSA for 2020 or 2021 can be used up throughout the following year (i.e., 2020 contributions used up in 2021), assuming the plan doesn’t allow for a carryover and that the employer amends the plan to allow the new rules to apply. The IRS has provided guidance on these new rules as well as the timing for making amendments. Generally, a calendar year plan for 2020 must be amended by December 31, 2021. #IdeaoftheDay
