With all of the changes in health insurance and the discussion of the ACA, it is hard to track what will be happening next. One item related to flexible spending accounts (FSAs) may have gotten lost in the noise. Late in October, the White House issued an informational fact sheet that sets out a significant change with FSAs. The “use-it-or-lose-it” nature of contributions has been modified by Treasury to allow a limited rollover of unused funds:
- as of this time, employers with plans that lack a grace period may elect to allow participants to roll over up to $500 of unused funds at the end of the 2013 plan year; and
- beginning plan year 2014, employers may allow participants to roll over up to $500 of unused funds at the end of the plan year.