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Your Flexible Spending Accounts: Use It or Lose It NOT!

Are you tired of only hearing health insurance exchange news yet?

We are!

And now that we are closing in on the end of the year, we want to make sure you are also focused on any benefits that may be expiring at the end of the calendar year.

Like your Flexible Spending Account (FSA).  Yes, it used to be that you had to use all the funds you set aside before Dec. 31st, even though you had until March 31st to put in a claim for those funds. But now….

Tada!

According to a recent Los Angeles Times article (boy, them sure have been on the ball lately, no?):

The U.S. Treasury Department and Internal Revenue Service changed the use-it-or-lose-it rule for flexible spending arrangements, or FSAs, to allow account holders to carry over as much as $500 from one year to the next without penalty…The new rules go into effect immediately, but they aren’t mandatory for employers. Firms can decide whether to make the change and when to make it.

How awesome is that??

When is your employer passing along this change to you?

Would you be more apt to take advantage of this benefit the next time it is offered to you?

For those that are not familiar with this benefit, it allows you to “take advantage of the deductions for everyday medical expenses, such as co-pays, over-the-counter drugs and other items not normally covered by health insurance…Because the funds are deducted from paychecks on a pretax basis, less of a worker’s earnings are subject to tax.”

Please share your thoughts and experiences with your FSA benefits in the comments section below, or on our facebook page.

Of course, if you need assistance in understanding your benefits, or to help ensure that you have coverage in 2014 and beyond, please complete the form below and one of our experts will be in touch with you right away!

 

Image courtesy of Kittikun Atsawintarangkul / FreeDigitalPhotos.net