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