In an effort to make health flexible spending arrangements (FSAs) more consumer-friendly and flexible, the U.S. Department of Treasury and the IRS have issued a change to the “use-or-lose” rule. Until now, health FSAs with account balances remaining at the end of the year are forfeited. The rule change will permit employers to allow employees eligible for heath FSAs to carry over up to $500 of unused amounts for expenses in the next year. Some plans may be allowed to implement the change for the plan year 2013.
View the full article on the US Treasury website