IRS Expands Virus-Related Aid, Boosts Expense Cap

May 12, 2020, 4:39 PM UTC

The IRS is giving employees more time to adjust their work-related benefits coverage and increasing the amount of tax-free dollars workers can put towards pandemic-related expenses.

The tandem guidance issued Tuesday, Notice 2020-29 and Notice 2020-33, describes the temporary relief spurred by the coronavirus outbreak.

Changes include:

  • Flexible spending: Employees with work-sponsored health flexible spending arrangements can carryover up to $550 in unused funds from the 2019 plan year to 2020. Leftover FSA funds can be applied to qualified expenses incurred through Dec. 31.
  • Election period: Employers can allow mid-year changes to work-related plans featuring health care ...

Learn more about Bloomberg Tax or Log In to keep reading:

See Breaking News in Context

From research to software to news, find what you need to stay ahead.

Already a subscriber?

Log in to keep reading or access research tools and resources.