On December 27, 2020, President Trump signed the ConsolidatedAppropriations Act, 2021 which includes important changes to the rules governing DCAP and health FSA accounts, with changes affecting plan years 2020, 2021, and 2022. Below is a summary of these important changes which will provide significant relief for DCAP and health FSA participants. The relief provisions are optional and employers/plan sponsors can choose which to adopt, if any. There are several factors that should be considered.

This document is provided for general information purposes only and should not be considered legal or tax advice or legal or tax opinion on any specific facts or circumstances. Readers are urged to consult their legal counsel and tax advisor concerning any legal or tax questions that may arise.

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