Use it or lose it rules

[Guest garyj]

What happens to unused funds in a Medical Savings Account at the end of a year? Who owns those funds? Are there restrictions on how the employer may use those funds? Can they be bonused back to an employee?

[Lisa Hand]

Gary:

Are you talking about the funds in a Medical Flexible Spending Account (FSA) in a Cafeteria Plan? A Medical Savings Account (MSA) is a different type of benefit.

[Guest Debra Button]

If you're talking about a health care flexible spending account the funds left in the accounts at the end of the plan year revert back to the plan. Generally they are used to offset the cost of the plan itself.