Good News for FSA and HSA Participants in 2020Additional Flexibility for FSA and HSA Programs is good news.Does your nonprofit offer a Flexible Spending Account (FSA), Health Savings Account (HSA), and/or a Dependent Care Assistance Program (DCAP)? If so, we have some good news for FSA, HSA, and DCAP participants to share! Thanks to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), employers now have some additional flexibility in those programs.Good News for Flexible Spending Accounts (FSA)Offers expanded allowable eligible medical expenses to include more over-the-counter (OTC) items, including menstrual care products to be reimbursed through an FSA.Extended claims periods to apply unused amounts for expenses incurred through 12/31/2020 in an FSA.Ability to make mid-year elections (new, revoke existing, and /or change existing elections retroactive to January 1, 2020) in an FSA.Allows the carryover amount to be increased to $550 form $500 for an FSA.See What is a FSA? in FSAStore.com for an explanation of flexible spending accounts.Good News for Health Savings Accounts (HSA)Expanded allowable eligible medical expenses to include more over-the-counter (OTC) items, including menstrual care products in an HSA.Contributions to an HSA are not affected by High Deductible Health Plans covering telehealth and remote care services (previously would be considered disqualifying).See our blog article, What is an HSA?, for an explanation of health savings accounts.Good News for Dependent Care Assistance Programs (DCAP)Extended claims periods to apply unused amounts for expenses incurred through 12/31/2020 for a DCAP.Ability to make mid-year elections (new, revoke existing, and /or change existing elections retroactive to January 1, 2020) for a DCAP.Please see IRS Notice 2020-29 and Notice 2020-33 for more details. Please leave comments below or contact your CalNonprofits Insurance Services dedicated team if you have any questions or if you would like to request an updated list of eligible medical expenses for your employee’s FSA, HSA and/or DCAP accounts. If you would like to join our mailing click link below.Join Us to Receive Monthly UpdatesAbout the Author CalNonprofits Insurance ServicesFounded in 1984 as a subsidiary of the California Association of Nonprofits (CalNonprofits), CalNonprofits Insurance Services was established during a time of diminishing insurance options for nonprofits. One of the driving reasons for establishing the association was to use the collective influence of the sector to secure more stable and quality insurance. We have developed, and are known for, our wide spectrum of services reflecting expertise in both the insurance and nonprofit sectors, our superior customer service, and our development of exclusive insurance products, including a highly successful dental and vision trust. We insure more than 1,200 nonprofit organizations throughout California and we are the only California brokerage specializing in insurance for nonprofits. Our clients range from newly established nonprofits all the way to venerable organizations with multiple locations statewide.Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *CommentName * Email * Website
Additional Flexibility for FSA and HSA Programs is good news.Does your nonprofit offer a Flexible Spending Account (FSA), Health Savings Account (HSA), and/or a Dependent Care Assistance Program (DCAP)? If so, we have some good news for FSA, HSA, and DCAP participants to share! Thanks to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), employers now have some additional flexibility in those programs.Good News for Flexible Spending Accounts (FSA)Offers expanded allowable eligible medical expenses to include more over-the-counter (OTC) items, including menstrual care products to be reimbursed through an FSA.Extended claims periods to apply unused amounts for expenses incurred through 12/31/2020 in an FSA.Ability to make mid-year elections (new, revoke existing, and /or change existing elections retroactive to January 1, 2020) in an FSA.Allows the carryover amount to be increased to $550 form $500 for an FSA.See What is a FSA? in FSAStore.com for an explanation of flexible spending accounts.Good News for Health Savings Accounts (HSA)Expanded allowable eligible medical expenses to include more over-the-counter (OTC) items, including menstrual care products in an HSA.Contributions to an HSA are not affected by High Deductible Health Plans covering telehealth and remote care services (previously would be considered disqualifying).See our blog article, What is an HSA?, for an explanation of health savings accounts.Good News for Dependent Care Assistance Programs (DCAP)Extended claims periods to apply unused amounts for expenses incurred through 12/31/2020 for a DCAP.Ability to make mid-year elections (new, revoke existing, and /or change existing elections retroactive to January 1, 2020) for a DCAP.Please see IRS Notice 2020-29 and Notice 2020-33 for more details. Please leave comments below or contact your CalNonprofits Insurance Services dedicated team if you have any questions or if you would like to request an updated list of eligible medical expenses for your employee’s FSA, HSA and/or DCAP accounts. If you would like to join our mailing click link below.Join Us to Receive Monthly UpdatesAbout the Author CalNonprofits Insurance ServicesFounded in 1984 as a subsidiary of the California Association of Nonprofits (CalNonprofits), CalNonprofits Insurance Services was established during a time of diminishing insurance options for nonprofits. One of the driving reasons for establishing the association was to use the collective influence of the sector to secure more stable and quality insurance. We have developed, and are known for, our wide spectrum of services reflecting expertise in both the insurance and nonprofit sectors, our superior customer service, and our development of exclusive insurance products, including a highly successful dental and vision trust. We insure more than 1,200 nonprofit organizations throughout California and we are the only California brokerage specializing in insurance for nonprofits. Our clients range from newly established nonprofits all the way to venerable organizations with multiple locations statewide.