Flexible Spending Account “Use-or-Lose Rule” Changed

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Employees that participate in flexible spending accounts (FSAs) can finally be less worried about forfeiting their unused funds. The Treasury Department recently announced that the infamous “use-or-lose” rule will be relaxed. Employers that sponsor an FSA arrangement are now permitted to allow participants to carry over up to $500 of unused funds from year to year. Previously, employees were forced to use all or their funds by year-end or risk losing them.

The use-or lose rule has been a long standing feature of FSAs. Each year the Treasury Department has come under increasing pressure to eliminate the …read more

Read more here: Nonprofit

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