IRS To Allow Roll-Over Option For Health Flexible Spending Accounts In 2014

Employees whose employers offer health benefits with a linked flexible spending arrangement (FSA) account in 2013 may be able to roll over up to $500 in unused health FSA funds to the next year. Previously, at the end of the year any unused health FSA funds contributed by the employee were lost; they lapsed back to the employer, which could use the funds to pay for the subsequent plan year. About 14 million families in the United States have access to an FSA. Details about the change in policy were released by the Internal Revenue Service (IRS) in a notice . . .