What changes are allowed to DCAP and Health FSAs due to COVID?
There are several recent changes that allow benefits-related relief provisions, including important changes to the rules governing dependent care assistance plans (DCAP) and health flexible spending accounts (FSA), with possible changes affecting plan years 2020, 2021, and 2022. Below is a summary of these important changes that will provide significant relief for DCAP and health FSAs participants if adopted by plan sponsors. Temporary Relaxed Carryover Rules for DCAP and Health FSAs: The relief bill allows employers to permit participants to carry over all unused funds from 2020 DCAP and health FSA plan year accounts to 2021 plan year accounts. The