COVID-19 FSA Plan Amendment and Summary of Material Modifications Now Available
What you need to know:
- Plan amendments are available for Health Care and Dependent Care flexible spending account (FSA) plans.
- Employers have been notified of the available amendments and should notify their Flores Account Manager if they wish to adopt the changes.
Charlotte, NC – August 6, 2020 – The guidance included in IRS Notice 20-29 and 20-33 included several items of importance to employers with flexible spending account plans, including the treatment of Dependent Care and Health Care FSA funds, options for mid-year election changes, and optional provisions for some plans to implement a claim incurrence extension.
We have worked with our ERISA attorneys and have optional plan amendments available. IRS relief allows until December 31, 2021 for all plan amendments to be formally adopted. The adoption of the plan amendments is optional.
Flores clients have been notified of the available amendments and we have requested that clients communicate to their Flores Account Manager if they wish to adopt the amendments. Executed documents may be returned to Flores, but it is not required. Employers should maintain a copy of legal documents, including amendments, for their records.
If you have additional questions, please contact your Business Development Partner or Flores Account Manager. We are in this together and grateful for your continued partnership during these challenging times.
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About Flores
Flores is a leading national administrator of tax-advantaged reimbursement plans including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs) and Commuter Benefit Accounts (CBAs). In addition to these account-based benefit options, they also handle COBRA and other direct bill services to meet the compliance needs of the employers they serve. In 2018, Flores introduced life.balanced. Reimbursement Accounts (LBA), an affordable post-tax lifestyle reimbursement account for the culture-driven employer. Based in Charlotte, NC, Flores has emerged as the leader in the CDHP market through a service model founded upon innovative technology, dedicated professionals, and an uncompromising commitment to superior service. For more information, visit the Flores website and follow them on LinkedIn.
- Cindy Bistany
- Director of Business Development and Strategic Alliances
- (828) 693-3595
- cindy@flores247.com
- Clay Peddycord, GBA, CFC
- Director of Business Development and Strategic Alliances
- (800) 532-3327
- clay.peddycord@flores247.com
- Aaron Hunt, MBA, CDHC, HSAe, Certified COBRA Administrator
- Director of Business Development and Strategic Alliances
- (800) 532-3327
- aaron.hunt@flores247.com