Excerpt: 'Use it or lose it,' is the infamous principle of Section 125 flex/cafeteria plans. Positive account balances traditionally cause a December stampede to purchase eyeglasses and other medical what-nots. The expenses must be incurred by December 31 or the balance is forfeited to the employer. For a country that wants to contain medical expenses, the rule that 125 savings must be spent or forfeited is a little silly. IRS has issued some welcome relief with new Notice 2005-42.