Great News!! The Department of Treasury has finally approved a $500 FSA (Flexible Spending Account) rollover option. If you have an FSA you have been used to the “Use it or Lose it” rule which often times led to many frustrated individuals losing their FSA dollars each year. The new modification allows employers to modify their current FSA plans to allow up to $500 of unused amounts remaining at the end of the year to roll over into the next year, provided that the plan does not offer the 2.5 month grace period. This carry-over does not affect the maximum amount of salary contribution ($2,500) that a participant is currently able to make.

If you currently offer an FSA plan you may want to look into revising your current plan to allow for this carry-over. If you are looking to add an FSA plan to your benefit options, call our offices today!