The New FSA Rollover Provision: What You Need to Know
Published on February 7th, 2014
On October 31, 2013, the White House issued a press release and informational fact sheet announcing a major policy change relating to flexible spending accounts (FSAs) that has many positive implications for all FSA constituents – including administrators, employers and participants. The US Treasury Department has modified its FSA “use-it-or-lose-it” provision to allow a limited rollover of FSA funds:
- Effective in plan year 2014, employers that offer FSA programs will have the option of allowing participants to roll over up to $500 of unused funds at the end of the plan year.
- Effective immediately, employers that offer FSA programs that do not include a grace period will have the option of allowing employees to roll over up to $500 of unused funds at the end of the current 2013 plan year.
To learn more about this change and what it might mean for your organization, your employer customers and participants – watch our informational webinar by filling out the form below.