The Consolidated Appropriations Act, 2021 (CAA), enacted on December 27, 2020, contains temporary rules to provide relief for participants in health flexible spending arrangements (FSAs) and dependent care flexible spending arrangements (DCAPs) in light of the COVID-19 pandemic. The CAA builds on previously issued Internal Revenue Service (IRS) guidance (IRS Notice 2020-29 and 2020-33), by expanding the opportunities for plan sponsors to amend their plans to give employees additional opportunities to use their currently unused FSA and DCAP balances through 2022.

Download the full bulletin below for more information on:

  • Carry Over of Unused Amounts
  • Extended Grace Period
  • DCAP Carry Forward
  • Midyear Election Changes
  • Amendment Deadline

CAA Bulletin

If you have questions or need help, please contact one of our benefit consultants.


Check out our COVID-19 Resource Center for more resources and information.


Information abstracted from UBA’s “Consolidated Appropriations Act, 2021 Part 3: Temporary Health FSA and DCAP Relief” update.