IRS Notice 2021-58 clarifies the appliance of sure COBRA deadline extensions for electing COBRA protection and paying COBRA premiums underneath prior aid that was issued because of the COVID-19 outbreak (“Emergency Aid”). Underneath the Emergency Aid, as much as one yr should be disregarded in figuring out the due dates for people to elect COBRA protection and pay COBRA premiums in the course of the Outbreak Interval (i.e., 60 days after the introduced finish of the Nationwide Emergency).
Discover 2021-58 clarifies that the disregarded durations to elect COBRA protection and make preliminary and subsequent COBRA premium funds usually run concurrently. The steering gives the next guidelines for instance the relevant time frames:
- • If a person elected COBRA protection throughout the preliminary 60-day COBRA election timeframe, they are going to have one yr and 45 days after the date of the election to make their preliminary COBRA premium fee.
- • If a person elected COBRA protection outdoors of the preliminary 60-day COBRA election timeframe, they typically could have one yr and 105 days after the date the COBRA discover was supplied to make the preliminary COBRA premium fee (topic to transition aid).
The steering additionally addresses the interplay of the Emergency Aid with the COBRA subsidies that had been made out there for sure eligible people underneath the American Rescue Plan Act (ARPA).
