Regional Vice President of Sales The Retirement Plan Company
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Healthcare Flexible Savings Accounts: 'Use-It-or-Lose-It' Rule Modified
McDonald Hopkins [Guidance Overview] Nov. 7, 2013
"The employer should consider the impact of a potential reduction in the amount of unused contributions previously being forfeited back to the company as a result of the 'use-it-or-lose-it' rule, and weigh the benefits of each option on its employees. Similarly, if the employer does not currently allow a grace period, but is thinking about providing its employees with the new carryover option, the employer should consider the potential administrative and loss of forfeiture costs, as well as the potential benefit to its employees, of providing this new option."
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