ATTENTION!! Any groups that are currently set up to take advantage of Section 125 for areas of their health plan:
The IRS has issued a bulletin 2020-29 that will allow group health plans to allow employees to make mid-year changes to Section 125 elections. These changes are not mandatory.
Below is a summary:
- Employees who declined coverage may enroll in their employer sponsored plan.
- Employees can add or drop family members.
- Employees could drop coverage completely if they prove that they are enrolled in comprehensive coverage.
- Section 125 elections may be changed for any reason. These would include both Flexible Spending Arrangements (FSA) and Dependent Care Reimbursement Arrangements (DCA).
The IRS Notice may be found at: https://www.irs.gov/pub/irs-drop/n-20-29.pdf
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