photo credit: jypsygen via photopin cc

photo credit: jypsygen via photopin cc

With most focused on the abysmal record of the ACA enrollment process thus far, we want members to know that the Department of the Treasury and the IRS have issued a notice modifying the longstanding “use it or lose it” for flexible spending arrangements.  The new regulation allows for a carryover to the next year of unspent FSA balances up to $500 for qualified expenses incurred in the subsequent year.  The carryover option will apply at the discretion of the employer.  In order to implement a carryover option however, the underlying plan document must be properly amended and participants must be notified of the change in their coverage plan.