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How The Pandemic Affects FSAs and Dependent Care

How The Pandemic Affects FSAs and Dependent Care

Medcom recently hosted a webinar discussing the changes the Pandemic made to our Flexible Spending Accounts and Dependent Care. Things are increasingly confusing, so we thought we would take a moment to lay out the changes and considerations moving forward. 

A Recap

In 2020, the IRS released Notices 2020-29 and 33. In these notices, the IRS stated they will allow unused amounts from FSAs to carryon over through December 31, 2020, for non-calendar year plans. This means that even if the calendar year plan ended in June 2020, the funds remaining in the participant's FSA were still available through...

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Understanding the Consolidated Appropriations Act, 2021

Understanding the Consolidated Appropriations Act, 2021

It is no surprise that with everything happening in 2020, we would round out the year with more complicated legislation about employee benefits. We are thankful for the folks in Washington who worked diligently to bring the Consolidated Appropriations Act, 2021, to the table. It will extend many of the conditions and modifications we were given in 2020 regarding our FSA and Dependent Care accounts. Now, more than ever, it seems, we Americans need help, and we are relieved that our Congress and President passed the legislation early this week.

Earlier this week, Medcom's Senior Legal Counsel, Michelle Barki,...

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2021 Benefit Limits Announced

2021 Benefit Limits Announced

The Internal Revenue Service released new 2021 benefit limits on October 27. The annual inflation adjustments show more than 60 tx provisions for the new year. However, several employee benefit limitation amounts will remain the same for 2021. We are here to provide a list of changes and a list of what will stay the same.

2021 Tax Limit Changes: The adoption credit, or the amount excluded for adoption assistance, allowed for an adoption of a child with special needs increase to $14,440. The amount for employee health insurance expenses of small employers increases to $27,800 (used for the tax credit). Limitation regarding eligible long-term...

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CDHP Basics: FSAs and HSAs

CDHP Basics: FSAs and HSAs

Offering employees attractive benefits is a great way to improve engagement and retention. For example, FSAs and HSAs are healthcare plans that cover medically-related expenses not included under a traditional health plan. However, many people do not know what is included in an HSA or FSA. Before I became an employee at Medcom Benefits, I had no idea what they were either! 

Do you know the difference between an HSA and FSA?

Both HSAs and FSAs allow people with health insurance to set aside money for health care costs, including deductibles, copayments and...

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