Health & Welfare

IRS Releases 2022 Welfare Benefit Plan Limits

The IRS has released Revenue Procedures 2021-25, and 2021-45 which set forth the 2022 inflation-adjusted limits for certain employee welfare benefit plans and the dollar amounts used for certain discrimination testing. 

FSA Debit Card Substantiation Rules

The IRS has released Information Letter 2021-0013 to reconfirm the substantiation rules for debit card use in health care flexible spending account plans (“FSAs”).

IRS Explains Tax Treatment of Dependent Care Benefits Under New Rules

The IRS has issued Notice 2021-26 to explain the tax treatment of dependent care flexible spending account plan (“DCAP”) benefits under the Consolidated Appropriations Act (“CAA”) and the American Rescue Plan Act (“ARP”).

IRS Says Personal Protective Equipment Expenses are Qualified Medical Expenses

The IRS has issued Announcement 2021-7, which confirms that personal protective equipment (“PPE”) such as masks, hand sanitizer, and sanitizing wipes purchased “for the primary purpose of preventing the spread of COVID-19” are qualified medical expenses under Internal Revenue Code (“Code”) Section 213(d). 

Important Benefit Plan Provisions of the American Rescue Plan Act of 2021

By Dannae Delano, Israel Goldowitz, Barry Salkin and Roberta Casper Watson

IRS Guidance on Flexible Spending Account Relief Under CAA

The IRS has issued Notice 2021-15 (“Notice”) to provide clarification on the flexible spending account (“FSA”) relief contained in the Consolidated Appropriations Act, 2021 (“CAA”). The Notice also extends cafeteria plan election relief, and provides guidance on adopting plan amendments to implement these optional changes. 

Stimulus Package Makes Major Changes with Respect to Employer Sponsored Benefit Plans

By Dannae Delano, Barry Salkin and Roberta Casper Watson

IRS Explains “Qualified Health Plan Expenses” for Purposes of FFCRA Tax Credit

The IRS has issued FAQs to help employers determine the amount of “qualified health plan expenses” for purposes of determining their tax credit under the Families First Coronavirus Response Act (“FFCRA”).

IRS Releases 2021 Welfare Benefit Plan Limits: Health FSA and HSA Limits Increase

The IRS has released Revenue Procedures 2020-45 and 2020-32, which set forth the 2021 inflation-adjusted limits for certain employee welfare benefit plans and the dollar amounts used for certain discrimination testing. 

IRS Releases 2020 Limits for Welfare Benefit Plans: Health FSA and HSA Limits Increase

The IRS has released the 2020 inflation-adjusted limits for certain employee welfare benefit plans and the dollar amounts used for certain discrimination tests.