The IRS has issued two notices which give employers more flexibility with Flex Plans.
None of this is required, but these changes are permitted in the current plan:
- Employees who previously waived participation may enroll off anniversary
- Employees who did not include dependents previously may now do so
- Employees may drop coverage for themselves or their dependents
- Employees may change the amount they have set for Dependent Care Plans
- For non-calendar plan years, may extend claims submission period to December 31
- If there is a carryover plan in place for Healthcare FSA, employer may increase the carryover limit from $500 to $550 to the subsequent year