Excerpt: There is no basis for the use-it-or-lose-it rule or the uniform coverage rule in Internal Revenue Code 125 or in the legislative history thereto. These rules exist under proposed regulations ... An alternative ... that would work under the law would be to: ... replace the uniform coverage rule ... with a rule that allows employees to reimburse themselves from their FSA accounts later in the year if expenses incurred earlier in the year exceeded the FSA premiums paid ...

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