Flex Spending: guess who gets whatever we don't use....

[dflprincess]

4. "Use it or lose it" rule changing

Last edited Sun Nov 3, 2013, 10:37 PM - Edit history (1)

It seems a bit vague about whether or not it will apply to this year's accounts though it does say the changes "could be implemented"

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http://money.cnn.com/2013/10/31/pf/flexible-spending-accounts/

There's good news for workers worried about forfeiting the money they put into their flexible spending accounts at the end of the year.

On Thursday, the U.S. Treasury Department announced it would be relaxing a rule that requires account holders to "use-or-lose" the funds in their accounts by the end of the year. Employers will now be able to allow participants to carry over up to $500 in unused funds into the next year....

...The change comes in response to individual and employer complaints that it's hard to predict future medical needs and that the "use or lose" rule encourages unnecessary spending on medical services and items at the end of the year.

An estimated 14 million families already participate in health FSAs. The changes may encourage other workers to use the accounts, which financial planners say are a good way to manage out-of-pocket medical costs....

... But first, employers need to offer this option to workers. The Treasury Department said the changes can be implemented as early as the 2013 plan year.