The IRS has issued additional guidance extending certain deadlines related to health savings accounts (HSAs) in response to the US outbreak of COVID-19, the disease that results from SARS-CoV-2 (Notice 2021-21 (Mar. 29, 2021)).

The IRS issued its guidance under the COVID-19-related national emergency declaration signed by the President on March 13, 2020 (under Section 7508A of the Internal Revenue Code) (26 U.S.C. § 7508A; see Practice Note, COVID-19 Compliance for Health and Welfare Plans: Extended Deadlines for Certain Health and Welfare Plan Requirements). Under this Code provision, a period of up to one year can be disregarded in determining whether certain Code-related compliance deadlines have been timely performed. The President's declaration directed the IRS to make available compliance relief for persons adversely affected by the COVID-19 pandemic.

The IRS's guidance automatically extends the deadline by which individuals must file their federal income tax returns (Form 1040 series) and submit related payments from April 15, 2021, to May 17, 2021. This same automatic postponement period also applies to the deadline by which individuals must make 2020 contributions to HSAs and Archer medical savings accounts (Archer MSAs) (see Practice Note, Defined Contribution Health Plans: Overview).

The IRS's guidance also extends the deadline by which HSA trustees must file Forms 5498-SA with the IRS and furnish the forms to participants and beneficiaries. Although this deadline would typically be June 1, 2021, the deadline for filing and furnishing Forms 5498-SA is postponed until June 30, 2021. As a result of this extension:

(See Practice Note, Defined Contribution Health Plans: Overview: Health Savings Accounts (HSAs) and Archer Medical Savings Accounts (Archer MSAs).)

This latest guidance adds to a growing list of benefits-related compliance extensions made available by the federal administrative agencies in response to the COVID-19 pandemic. The challenge for plan sponsors, plan administrators, and their advisors this year is keeping in mind how the different relief guidance applies—particularly given that this applicability varies depending on the health plan mandates involved. For more information, see: