If you’ve ever worried about losing your FSA dollars at the end of the year, we have some good news for you.  Today, the U.S. Department of the Treasury and the IRS issued a notice changing the unpopular “use-it-or-lose it” rule for flexible spending accounts.  The rule previously did not allow unspent FSA balances to carry over into the next year and any remaining dollars could not be spent on healthcare needs. However, the new change allows participants to carry over up to $500 unused FSA dollars to their accounts for the following plan year.

This is great news for consumers, as the new change allows for greater flexibility with your healthcare needs, as planning for the unexpected can be difficult for many.  The hopes are that these changes will increase consumer participation in FSA accounts and reduce the amount of unused account funds.  The “use-it-or’lose-it” rule is officially out and the new changes will be implemented in 2014 plan year.

 

Sources

http://www.benefitspro.com/2013/10/31/fsa-use-it-or-lose-it-rule-changed?eNL=5272b30d150ba0b438000073&utm_source=BenefitsProNewsAlert&utm_medium=eNL&utm_campaign=BenefitsPro_eNLs&_LID=80687831

Alegeus Technologies

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