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But the principle also applies if employees have flexiblespending accounts or health savings accounts. Employees, on the other hand, would probably prefer safe harbor #1, since they incur no immediate out-of-pocketcosts. One safe harbor, two options.
Here is what you should know: Temporary Special Rules for Health and Dependent Care FlexibleSpending Arrangements. Mid-Year Election Changes: The Act permits plans to allow employees to prospectively change their health or dependent care flexiblespending arrangement elections without a change in status at any time in 2021.
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