COVID-19 Treasury and IRS Notices

On May 12, the U.S. Treasury Department and the Internal Revenue Service (IRS) issued two notices that provide additional flexibility for employers with respect to cafeteria plans, health flexible spending arrangements (health FSAs), and dependent care flexible spending arrangements (dependent care FSAs):

Notice 2020-29  
The guidance in this notice is specific to the COVID-19 pandemic.

• Provides increased flexibility for cafeteria plans, health plans, health FSAs, and dependent care FSAs
• Clarifies some COVID-19 related provisions related to health savings account (HSA)-eligible high deductible health plans (HDHPs)

Notice 2020-33
The guidance in this notice is not specific to the COVID-19 pandemic.

• Modifies the permissive carryover rule for health FSAs
• Clarifies reimbursements of premiums by individual coverage health reimbursement arrangements (individual coverage HRAs)