Flex Accounts Are No Longer Use It Or Lose It

Federal officials have decided to permit workers to saveunused funds in flexible spending accounts for healthcare. The IRS and theTreasury Department altered the “use-or-lose” rule last Thursday. Thenew 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 familiesparticipate in the healthcare flex accounts. Experts claim that more familieswould use flex accounts but because unused funds would be forfeited to theemployer 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.