In response to to the COVID-19 Pandemic, the IRS has issued a new Notice (the full Notice 2020-29 can be downloaded here) that will allow for employees to make necessary changes as needed to help relieve some of the burdens they may be facing. The biggest change that employers and HRs will see are the following:
- Employees can make a new election if the employee previously declined coverage;
- Revoke an existing election and enroll in different health coverage sponsored by the employer
- Revoke an existing election, if the employee is or will be enrolled in other health coverage
These changes apply if you have a Section 125 Cafeteria Plan.
Please let McKnight know if you have any questions about this new Notice.