The ADA is reporting that the US dept of Treasury is easing the rules on Flex spending accounts (FSA). The “use-it or lose-it” rule does not apply. Now you are able to carry over $500 of unused FSA funds at employer discretion. Currently there are 14 million families that use FSAs to pay for medical and dental expenses.
“Today’s action directly responds to public comments invited by the Treasury Department and the IRS,” Treasury announced Oct. 31. “An overwhelming majority of feedback from individuals, employers and others requested that the use-or-lose rule for health FSAs be modified. Comments pointed to the difficulty for employees of predicting future needs for medical expenditures, the need to make FSAs accessible to employees of all income levels, and the desire to minimize incentives for unnecessary spending at the end of the year.”
You can read the rest of the article here: http://www.mouthhealthy.org/en/home-ada/publications/ada-news…
