Close
Back

Liscio

Client Login

- Individual Clients
- Business Clients
- Client Employee


Forgot Your Password? Please try logging in with the last password you remember first. (If that fails, you'll be able to reset your password on the next page.)

Accounting Login

(QuickBooks and Peachtree)

Accounting Login

(QuickBooks Online)

Accounts Payable


Video Meeting

Join a scheduled video meeting with our staff.
Join Meeting
Close
Send Request

IRS Eases the “Use-it-or-Lose-it” Rule for Flexible Spending Plans

December 17, 2013

With the end of the year on the horizon, many individuals with flexible spending accounts (FSAs) are scurrying to spend residual funds to avoid “losing” them, in accordance with IRS regulations. However, the regulations have now changed with the IRS easing the “use-it-or-lose-it” rule for health flexible spending plans. Individuals with FSAs can now carry over a maximum of $500 to the following year without forfeiture. So now, employees will not have to rush to clean out their accounts by the end of the year, or by March 15 of the following year, if their flexible spending plan has adopted this grace period.

It is important to note that an employer cannot offer a FSA carryover provision and an FSA grace period at the same time. In order to allow for this $500 carry over, employers must amend their plans to adopt the change. However, if an employer’s FSA plan currently allows for the grace period, that provision must be dropped in order to allow for the $500 carryover adoption.

Employers can implement the carryover for 2013 as long as the flexible spending plan is amended by the end of 2014. However, if the plan currently allows the grace period up until March 15, then the plan must be amended by the end of 2013 to formally eliminate this provision.

If you have any questions about this information, please contact us. We are always here to help.

   

Back to List


Next Generation Accounting Firms provide clients with the highest level of client service and professional support. At Leppert Group, LLC, we go beyond the numbers to partner with clients—working year round to ensure you stay on a healthy financial path. We also offer an ...  

read more

Specializing in Service-Based Businesses

Service-based businesses require specialized accounting, tax, payroll and other financial services—and our firm delivers. Our experts have years of experience helping service-based businesses in a wide range of industries successfully manage their day-to-day “back-office” financial operations as well as creating strategic plans for long-term success.

read more

Latest from Our Blog