‘Use-or-lose’ rule changing for Flexible Spending Accounts

Posted on 19. Nov, 2013 by in 2013 Taxes, Tax

USCurrency_Federal_ReserveIn past years, U.S. workers would have to forfeit any unused funds at the end of the year, causing people to, typically, underfund these accounts. But, the Treasury Department has relaxed the rule, allowing account holders to carryover up to $500 in unused funds into the next year.

‘Use-or-lose’ rule changing for Flexible Spending Accounts

By Melanie Hicken, CNN

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.

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