Flex Spending Use-or-Lose

The Treasury Department released an update to the Use-or-Lose rule for Flex Spending Accounts.

To make health FSAs more consumer-friendly and provide added flexibility, the updated guidance permits employers to allow plan participants to carry over up to $500 of their unused health FSA balances remaining at the end of a plan year.

Some plan sponsors may adopt a carryover provision as early as plan year 2013.

Read more about this important change: http://www.treasury.gov/press-center/press-releases/Pages/jl2202.aspx