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New IRS Guidance Modifies the 'Use-It-Or-Lose-It' Rules for Health Flexible Spending Accounts
Ballard Spahr LLP [Guidance Overview] Nov. 4, 2013 "The change is intended to make health FSAs more attractive to low-to-moderate-income employees who may have been reluctant to contribute, fearing they would be unable to fully use the account and lose any dollars they have contributed.... In addition, the change is intended to reduce incentives for unnecessary spending, such as the common phenomenon of a year-end rush by health FSA participants to use up their health FSA accounts on such items as eyeglasses." |
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