Facebook
Twitter
LinkedIn
Instagram
Close
Back

Client and Employee Login



Forgot Your Password? Please try logging in with the last password you remember first. (If that fails, you'll be able to reset your password on the next page.)

QuickBooks Desktop Login


QuickBooks Online Login

Accounts Payable Login


ShareFile

Close
Send Request

Forward-thinking advisors for today’s progressive entrepreneurs.

IRS Eases the “Use-it-or-Lose-it” Rule for Flexible Spending Plans

December 17, 2013

With the end of the year on the horizon, many individuals with flexible spending accounts (FSAs) are scurrying to spend residual funds to avoid “losing” them, in accordance with IRS regulations. However, the regulations have now changed with the IRS easing the “use-it-or-lose-it” rule for health flexible spending plans. Individuals with FSAs can now carry over a maximum of $500 to the following year without forfeiture. So now, employees will not have to rush to clean out their accounts by the end of the year, or by March 15 of the following year, if their flexible spending plan has adopted this grace period.

It is important to note that an employer cannot offer a FSA carryover provision and an FSA grace period at the same time. In order to allow for this $500 carry over, employers must amend their plans to adopt the change. However, if an employer’s FSA plan currently allows for the grace period, that provision must be dropped in order to allow for the $500 carryover adoption.

Employers can implement the carryover for 2013 as long as the flexible spending plan is amended by the end of 2014. However, if the plan currently allows the grace period up until March 15, then the plan must be amended by the end of 2013 to formally eliminate this provision.

If you have any questions about this information, please contact us. We are always here to help.

   

Back to List


Client Center

Back

Client and Employee Login



Forgot Your Password? Please try logging in with the last password you remember first. (If that fails, you'll be able to reset your password on the next page.)

QuickBooks Desktop Login


QuickBooks Online Login

Accounts Payable Login


ShareFile

Using Your Client Organizer
How to Review My 1040

Contact Us

3309 Bob Wallace Avenue
Huntsville, AL 35805

Toll Free: 800.533.4816
Direct: 256.536.3513
Fax: 256.534.4771

Memberships

American Academy of Accounting and Tax Professionals
American Institute of Certified Public Accountants Alabama Society of Certified Public Accountants
QuickBooks Certified ProAdvisor Online

Latest from Our Blog