This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for February 2021 used under § 417(e)(3)(D), the 24-month average segment rates applicable for February 2021, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).

This notice provides guidance on the application of § 214 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the Act), which provides temporary special rules for health flexible spending arrangements (FSAs) and dependent care assistance programs under § 125 cafeteria plans. Specifically, § 214 of the Act: provides flexibility with respect to carryovers of unused amounts from the 2020 and 2021 plan years; extends the permissible period for incurring claims for plan years ending in 2020 and 2021; provides a special rule regarding post-termination reimbursements from health FSAs during plan years 2020 and 2021; provides a special claims period and carryover rule for dependent care assistance programs when a dependent “ages out” during the public health emergency posed by COVID-19; and allows certain mid-year election changes for health FSAs and dependent care assistance programs for plan years ending in 2021. In addition, the notice provides that a § 125 cafeteria plan may permit employees to make certain mid-year election changes with respect to employer-sponsored health coverage and provides relief with respect to the effective date of amendments to § 125 cafeteria plans to implement certain changes under the CARES Act for health FSAs and health reimbursement arrangements.

Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term tax exempt rate. For purposes of sections 382, 1274, 1288, 7872 and other sections of the Code, tables set forth the rates for March 2021.

(Also Sections 42, 280G, 382, 467, 468, 482, 483, 1288, 7520, 7872.)