34 Tex. Admin. Code § 85.6 - Relief Options Due to the Coronavirus (COVID-19)
The following provisions, which apply only to plan years 2021 and 2022, are enacted pursuant to §214 of the Federal Taxpayer Certainty and Disaster Tax Relief Act of 2020 and other relevant federal law.
(1) Dependent care reimbursement plan.
(A) Unlimited carryover. A participant may
carry over to plan year 2021 any unused amount in a dependent care
reimbursement account that would have expired at the end of plan year 2020 and
may carry over to plan year 2022 any unused amount in a dependent care
reimbursement account that would have expired at the end of plan year
2021.
(B) Grace periods. Because of
unlimited carryover relief, grace periods for dependent care reimbursement
accounts do not apply for plan years 2020 and 2021.
(C) Dependent age extension. For plan years
2020 and 2021, the maximum age of a dependent is 14.
(D) Prospective mid-year election changes.
During calendar year 2020 and through plan year 2021, a participant may
increase or decrease contribution amounts or end enrollment for a dependent
care reimbursement account without a qualifying life event. A participant may
not reduce contributions to an amount less than the total of:
(i) the amount of payroll distributions in
the account, if any; and
(ii) the
amount of reimbursement the participant has received, if any.
(2) Health care
reimbursement plan.
(A) Unlimited carryover.
A participant may carry over to plan year 2021 any unused amount in a health
care reimbursement or limited purpose health care reimbursement account that
would have expired at the end of plan year 2020 and may carry over to plan year
2022 any unused amount in a health care reimbursement or limited purpose health
care reimbursement account that would have expired at the end of plan year
2021.
(B) Post-termination
reimbursement. A participant who ceases contributing to a health care
reimbursement or limited purpose health care reimbursement account during plan
year 2020 or 2021 may continue to receive reimbursement from any unused amount
through the end of the plan year in which participation ended, including any
grace period or extended grace period.
(C) Prospective mid-year election changes.
During calendar year 2020 and through plan year 2021, a participant may
increase or decrease contributions or end enrollment for a health care
reimbursement account or a limited purpose health care reimbursement account
without a qualifying life event. A participant may not reduce contributions to
an amount less than the total of:
(i) the
amount of payroll distributions in the account, if any; and
(ii) the amount of reimbursement the
participant has received, if any.
Notes
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