Flexible Spending Accounts
Summer is finally here! For many people, the arrival of summer means vacations, backyard barbeques, and lots of time spent in the great outdoors. With all the summer fun you’ll be having, you’re probably going to want to stock up on some essential products to help you look and feel your best this season.
It may surprise you to learn that many of these products are FSA-eligible. That means that you can use your Flexible Spending Account to pay for them tax-free!
The Internal Revenue Service (IRS) has recently issued Notice 2021-26 which provides tax guidance for various provisions that have recently changed for Dependent Care Flexible Spending Accounts (DC FSAs), which are sometimes also referred to as Dependent Care Assistance Programs (DCAPs).
Everyone knows that Flexible Spending Accounts (FSAs) save employees money on healthcare and dependent care expenses. But did you know that FSAs save employers money as well?
FSAs are one of the few benefits an employer can provide that often pays for itself—and then some! While there are expenses that will be incurred by the employer when using a third-party administrator for the FSA, there are also payroll tax savings that will offset some or all those expenses.
President Donald Trump signed a new stimulus bill into law on December 27, 2020 which will provide direct payments to eligible individuals and loans to small businesses, among other things. Among those other things are temporary and optional changes that employers can implement to Health and Dependent Care Flexible Spending Accounts (Health FSAs and Dependent Care FSAs).
When talking about Health Flexible Spending Accounts (FSAs), you may hear the terms carryover, grace period and run-out period, but what do they mean and how do they differ? Here are some simple explanations of each term.
The Internal Revenue Service (IRS) recently released Notice 2020-29 and Notice 2020-33 which provide substantial changes to Cafeteria Plans, Health Flexible Spending Accounts (Health FSAs) and Dependent Care Assistance Programs (commonly referred to as Dependent Care FSAs).
When talking about Health Flexible Spending Accounts (FSAs), you may hear the terms carryover, grace period and run-out period, but what do they mean and how do they differ? Here are some simple explanations of each term.
Time is running out to spend your 2018 FSA funds. In most cases, unless your plan has carryover or the Grace Period, you’ve only got until 12/31 to spend any remaining balance. By the time the ball drops on New Year’s Eve, any money left in your account will be forfeited.
On November 15th, the IRS released Revenue Procedure 2018-57 which includes inflation adjustments for certain employee benefit programs and other items.
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