IRS Changes to FSA “Use-it or Lose-it” Rule

This afternoon, the IRS and U.S. Department of Treasury have issued a n-13-71 modifying the healthcare flexible spending account (FSA)’s “Use-it or Lose-it” rule. Effective immediately, employers that offer FSA programs that do not include a grace period will have the option of allowing employees to rollover up to $500 of unused funds at the […]

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June 5, 2012
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2013 FSA Contriubtion limits, 2013 FSA IRS Guidelines, IRS FSA use it or lose it rule changes

IRS May Eliminate FSA Use-It-or-Lose-It Rule

Employers and plan administrators that offer health flexible spending accounts have been bracing themselves for Jan. 1, 2013. That’s when the $2,500 limit on health FSA salary reduction contributions provided for in the Patient Protection and Affordable Care Act kicks in. The IRS on May 30 issued Notice 2012-40, which provides guidance on the limit, […]