On December 16, the Internal Revenue Service (IRS) issued Notice
2014-1 (Notice), which provides additional guidance for cafeteria
plans, including health and dependent care flexible spending
arrangements and health savings accounts, as a result of the U.S.
Supreme Court's decision in United States v. Windsor
in which the Supreme Court ruled that Section 3 of the Defense of
Marriage Act (DOMA) was unconstitutional. (See our prior Client
Alert, DOMA Unconstitutional: Impact on Employee Benefits
Plans.)
Notice 2014-1 amplifies prior IRS guidance in Revenue Ruling
2013-17 (see our prior Client Alert, IRS Issues DOMA Guidance:
Action Steps for Employers) and includes a series of Q&As that
provide further guidance on the application of the Windsor
decision with respect to certain rules governing cafeteria plans,
health and dependent care flexible spending arrangements, and
health savings accounts. A summary of the guidance in Notice 2014-1
is provided below.
