IRS sign on desk IRS Notice 2020-29 provided for increased flexibility with respect to mid-year elections for employer-sponsored health coverage, FSAs and DCAPs.

Many of the COVID-19 relief provisions included in the Families First Coronavirus Response Act (FFCRA), the Coronavirus Aid, Relief, Economic Security Act (CARES), and Internal Revenue Service (IRS) Notice 2020-29 were set to expire at the end of the 2020 calendar year. As infection rates continued to soar into the holiday season, employers and group health plan sponsors were left with no direction or guidance on how to organize their benefit offerings for the 2021 calendar year. This was especially troublesome for employers that sponsor benefits via a cafeteria plan, such as Health Care Flexible Spending Accounts (FSAs) and Dependent Care Assistance Programs (DCAP).

Related: Consolidated Appropriations Act deep dive: Health and dependent care flexible spending accounts

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and events.
  • Access to other award-winning ALM websites including and

Already have an account?



Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including and
  • Exclusive discounts on and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.