12/29/20 Update: On Sunday, December 27, 2020 the Consolidated Appropriations Act, 2021 was signed into law. Sentinel is currently awaiting interpretive guidance from the IRS to ensure that we properly articulate and administer the new provisions that have been made available to employers. As soon as this additional guidance is issued and processed, Sentinel will reach out via email to each client for which we administer an FSA plan to provide a more in-depth overview of the provisions as well as a way to opt-in to each option.
On Monday, December 21, 2020, Congress passed the Consolidated Appropriations Act, 2021. Included in the volume of text were several items related to Flexible Spending Account (FSA) relief. This bill has not yet been signed into law by President Trump; however, if it is executed in its current state, employers will have several appealing provisions that they can adopt to help provide relief to employees who are enrolled in an FSA. Here is an overview of the key FSA provisions:
If you’d like to read only the portions of the bill that apply to FSAs as they were written, you can find that text here.
Employers will not be able to opt-in to these provisions until the bill is signed into law. If and when that happens, Sentinel will send out an email to any employer for which we administer an FSA plan. In that email communication, we will provide a more detailed overview of the options, as well as a way for your organization to opt-in to any one of the available provisions.Opt-in will be required for any of these relief options to be applied to an employer’s FSA plan.
Sentinel is very excited to hear about the possibility of these provisions being signed into law as it means more options would be available for individuals who were unable to spend their FSA funds in 2020. If we administer an FSA plan for your organization, expect to hear from the Sentinel Health & Welfare Team via email if and when the bill is signed into law.