Change to FSA “Lose it or Lose it” Rule

Yesterday, the Department of Treasury announced a major policy change that will impact Flexible Spending Account (FSA) plans. In what is being hailed as a hugely positive development for administrators, employers, and FSA participants, the Treasury has modified the “use it or lose it” provision to allow for a limited rollover of FSA funds.

Details are as follows:
Effective for the 2014 plan year, employers will have the option to allow FSA plan participants to roll over up to $500 of unused funds at the end of the plan year.
Effective immediately, employers with an FSA plan that does not include a grace period will have the option to allow current FSA plan participants to roll over up to $500 of unused funds at the end of the 2013 plan year.

RTS will continue to apprise its members of critical information impacting them as employers and contributing to their profitability and overall success!

About Gary Chavez

Gary is a trusted advisor to small and mid-sized businesses. He offers a comprehensive system to outsource the administrative, tactical and strategic aspects of Human Resources, allowing entrepreneurs to delegate important but often mundane duties to human resource professionals. He helps business owners save time and reduce expenses related to having employees while improving their performance.

In addition to a complete human resource suite of services, he also provides businesses with comprehensive insurance services; health insurance, commercial liability, workers compensation, and commercial auto insurance. In-house insurance specialists can provide proposals from all the major insurance brands and advise you which plan provides the best coverage for the cost.

As a client, you'll be able to offer a world-class platform of employee benefits that allows you to attract and retain top talent, while freeing time to concentrate on the fun, profitable tasks that attracted you to entrepreneurship in the beginning and achieve new levels of success and satisfaction.