Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Treasury, IRS To Allow $500 FSA Plan Carryovers
WASHINGTON (11/2/13)--Health flexible spending arrangement (FSA) plan participants will soon be able to carry over up to $500 of their unused health FSA balances from year to year, the U.S. Department of the Treasury and the Internal Revenue Service said this week.

The decision follows comments from individuals, employers and others who requested that the use-or-lose rule for health FSAs be modified, the Treasury said in a release. Currently, FSA plan holders are forced to forfeit any unused funds at the end of the year. Some employers Treasury permit grace periods of up to two-and-a-half months.

In requesting the policy change, commenters noted it can be difficult to predict future medical spending needs. They also said the change would make FSA plans more accessible for employees of all income levels.

"Across the administration, we are always looking for ways to provide added flexibility and common-sense solutions to how people pay for their healthcare," Treasury Secretary Jacob Lew said.

The new carryover conditions could be made available to employees as soon as this year. However, employers will need to decide whether they want to offer a grace period or a carryover to their employees. They will not be permitted to do both.

For more, use the resource link.
Other Resources

Treasury Release
RSS





print
News Now LiveWire
#FinCEN seeks nominations of FIs, trade groups for membership on Bank Secrecy Act advisory group http://t.co/l5w58c277W
37 minutes ago
MI pediatric dentist pledges $20K match to Hurley Children's Hospital if it wins @CUDirect's 20 for 20 http://t.co/Eq2nIPm6jo
1 hours ago
Kids learn budgeting with M&Ms http://t.co/SzXipTLX12
1 hours ago
Neb. #creditunions report widespread growth: 3Q review #NewsNow #system http://t.co/BavEljz15w
2 hours ago
Economic growth leaps in Nov, @ChicagoFed reports http://t.co/8Xo9lKLFf2
3 hours ago