More IRS Guidance On Cafeteria Plan, FSA, DCAP And HSA Administration Post-Windsor

In Notice 2014-1, the IRS has provided additional guidance for cafeteria plans (including health and dependent care flexible spending accounts) and Health Savings Accounts on compliance with the changes to treatment of same-sex married couples following the Supreme Court's Windsor decision. The guidance in Notice 2014-1, issued on December 16, 2013, expands on previous IRS guidance issued in Revenue Ruling 2013-17, which we discussed in our client advisory available here. The bullet points below summarize the key guidance points described in the Notice and offer some practical insight for employers in implementing the guidance.

Windsor's Effect on Cafeteria Plan Administration

• Cafeteria plan participants who were legally married on June 26, 2013—the date of the Windsor decision—may make change-in-status elections based on a change in marital status (if the plan permits these type of changes). These changes may be made any time during the cafeteria plan year that