If you have ever found yourself frantically digging through old receipts in an attempt to claim the remaining dollars in your Flexible Spending Account (FSA) before the end of the year—or worse, realizing with dismay on January 1st that you still had money in the account—you know how frustrating the IRS’ “Use or Lose” rule for FSAs has been in the past.
That’s right—in the past. Last month the IRS announced a few changes in this rule, which gives employers the opportunity to take some of the stress out of their employees’ end-of-year spending. Got some extra cash sitting in that FSA on December 31st? No problem—the new rule says you may be able to roll it over to next year.
This is good news for the 33 million Americans who use FSAs to funnel pre-tax dollars toward healthcare expenses, including those that might otherwise not … Read More