May 18, 2020
IRS is currently allowing temporary changes to section 125 cafeteria plans (Notice 2020-29 and Notice 2020-33). These changes extend the claims period for health flexible spending arrangements (FSAs), dependent care assistance programs, and allow taxpayers to make mid-year changes.
These changes to the notices were issued because of the coronavirus (COVID-19) pandemic and provide temporary relief for high deductible health plans that may be applied retroactively to January 1, 2020. It also increases for inflation the $500 permitted carryover amount for health FSAs to $550.
Notice 2020-29 (PDF):
Notice 2020-33 (PDF) increases the number of funds that can carry over without penalty at the end of the year for flexible spending arrangements. The notice increases the limit for unused health FSA carryover amounts from $500, to a maximum of $550, as adjusted annually for inflation.
It’s safe to say that most people are laser focused on money right now—specifically on how to make it last longer. To help you do just that, we compiled the following list of tips for spending less in 2020:
The U.S. House overwhelmingly (417-1) approved legislation Thursday, May 28th, making it easier for small businesses and other recipients of Paycheck Protection Program (PPP) funding to qualify for forgiveness of the loans.
The House bill, called the Paycheck Protection Program Flexibility Act (PPPFA), H.R. 7010, includes:
The following are the rules for the Paycheck Protection Program — especially in relation to maximizing Loan Forgiveness. Regulations and guidance from the government have evolved and we will continue to keep you updated on changes moving forward.