Section 214 of the Consolidated Appropriations Act, 2021 (“CAA”) included optional and temporary relief for health flexible spending accounts (“health FSAs”) and dependent care assistance programs (“DCAPs”) offered in a Section 125 cafeteria plan (“cafeteria plan”). On February 18, 2021, the Internal Revenue Service (“IRS”) issued Notice 2021-15 providing guidance addressing these optional plan changes.
Briefly, highlights from the guidance include: