New Tax Rule for 2013 FSA Accounts

Are you aware that the use-it-or-lose-it rule for Flexible Spending Accounts (FSA) was changed in 2013? Beginning with the 2013 tax year, all employers are required to give employees a choice of either a three month grace period after the end of the year to use the FSA amounts for the previous year, or allow them to carry up to $500 over to the next year. Only one of these options can be offered. Also, there are more changes in front of Congress for 2014 – we’ll share these as they become effective. As always, we hope everyone has a wonderful day!