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Important Update on FSA Health Plan Use-it-or-Lose-it

The Treasury Department has modified the Use-it-or-Lose-it provisions to allow a limited rollover of FSA Healthcare Funds of up to $500 at the end of the plan year.

- For plan year 2013, employer groups may allow a rollover option on the plan design if there is not a grace period already in place. With this, employees can rollover remaining balances up to $500 in their 2013 plan year to the 2014 plan year.

- Effective with 2014 plan years, employer groups will have the option of implementing a rollover option on the plan design or continue using a grace period option. However, it is important to note that both options cannot be implemented (it is an either or situation) and that neither are required.

Please contact our office if you have additional questions or if you would like to make adjustments to your plan designs. For your quick reference, the links to the Treasury Department notices are included below:

www.treasury.gov/presshttp://-center/press-releases/Documents/103113FSA%20Fact%20Sheet.pdf

http://www.treasury.gov/press-center/press-releases/Pages/jl2202.aspx