IRS Issues Guidance on Application of High Court’s Windsor Decision to FSAs, HSAs
Posted December 16, 2013, 3:27 P.M. ET
The Internal Revenue Service issued guidance Dec. 16 on the application of the U.S. Supreme Court’s Windsor decision to health and dependent care flexible spending arrangements and health savings accounts.
In Notice 2014-1, mostly in the form of questions and answers, the IRS addressed various implications of the high court’s June decision striking down a key section of the Defense of Marriage Act on rules under tax code Section 125, on cafeteria plans, and under Section 223, on HSAs.
The questions and answers address such issues as making midyear election changes tied to United States v. Windsor, when a change in election takes effect, FSA reimbursements of covered expenses incurred by the participant’s same-sex spouse and whether same-sex married couples are subject to the joint deduction limit for contributions to a HSA, among other issues.
Text of the notice is at http://op.bna.com/pen.nsf/r?Open=pkun-9efr8x.