New rules for Flexible Spending Accounts

Posted by Susan Veligor on November 5, 2013

This is the time of year employees generally elect how much of their 2014 wages
will be deferred to their employer-provided Flexible Spending Account (FSA.) It is
always a challenge to estimate just how much of this tax-deferred money one will
actually use throughout the year and under the old “use it or lose it” policy there
was a risk of forfeiture. The new rule that rolled out with the health care
legislation now allows an employee to roll over up to $500 of unused funds into
the next year. This is effective immediately (for 2013) but is not mandatory
that employers offer this option – worth checking into, though.

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