Is it true that we can allow our employees to make changes to their health and FSA benefits based on changes in circumstances due to COVID-19 related reasons?
A.- Yes. The IRS relaxed its cafeteria plan mid-year change rules for 2020. Now, plan sponsors may allow participants to change their pre-tax elections of health coverage and flexible spending account coverage. The IRS does not require the change to be limited to a COVID-19 related reason. However, for administrative purposes employers may want to place restrictions on the reason for changing elections and the number of times elections may be changed.
Have more F.S.A. questions? Please contact your Total Benefit Solutions, Inc benefit specialist at (215)355-2121.
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