Tuesday, November 5, 2013
Federal officials have decided to permit workers to save unused funds in flexible spending accounts for healthcare. The IRS and the Treasury Department altered the "use-or-lose" rule last Thursday. The new rule allows a $500.00 carry over of the unused portion of a flex account. Employers will be responsible to implement the change. 14 million families participate in the healthcare flex accounts. Experts claim that more families would use flex accounts but because unused funds would be forfeited to the employer employees have been reluctant to use the account.
See Chad Terhune, U.S. Officials Change 'Use-or-Lose' Rule For Health Spending Accounts, Los Angeles Times, Oct. 31, 2013.