The IRS today released an advance version of Rev. Proc. 2020-43 that provides the maximum amount allowed to be newly made available for plan years beginning after December 31, 2020, and before January 1, 2022, for “excepted benefit” health reimbursement arrangements (HRAs) remains $1,800.
Under Reg. section 54.9831-1(c)(3), certain group health plans qualify as limited excepted benefits that are not subject to certain group health plan requirements of the Code.
Rev. Proc. 2020-43 [PDF 36 KB] provides that for plan years beginning after December 31, 2020, and before January 1, 2022, the maximum amount that may be made newly available for the plan year for an excepted benefit HRA under Reg. section 54.9831-1(c)(3)(viii) remains $1,800.
The revenue procedure states that the IRS and Treasury Department intend to publish by June 1, 2021, the adjusted amount for plan years beginning after December 31, 2021, and before January 1, 2023.
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