WHAT: IRS temporarily relaxes Section 125 rules
WHY: Response to ease employee liabilities and concerns during COVID-19 event
WHEN: May 12, 2020
Notice 2020-29 allows employers to adopt one or more changes to existing cafeteria plans for the 2020 plan year:
Please note that there are additional parameters that apply to an employer’s election of these allowed changes, including requiring plan amendments and SMM distribution. Overall, these are very timely and valuable changes that should ease both the financial and administrative burdens brought on by the COVID-19 event.