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The IRS has announced a change to the nearly 30 year rule requiring participants in a flexible spending account (FSA) to “use it or lose it”. Effective immediately for the 2013 plan year employers that do not include a 2 ½ month extension to let people use up unused FSA balances may permit participants to carry over $500 into the next year. The $2500 cap on what participants can contribute remains the same.  Employers may not have both a carry over and the 2 ½ month extension.