CPS helps explain IRS new rule on FSA
Concordia Plan Services (CPS) has developed talking points (here) to address the recent notice from the U.S. Department of Treasury and the IRS that modifies the “use-or-lose” rule for health flexible spending (FSA) arrangements. For the first time, at the employer’s option, employee’s participating in health FSAs will be allowed to roll over – instead of forfeiting – up to $500 of unused funds remaining at year-end if the employer elects to offer this new option. Employers electing the roll over option will have to have their cafeteria plan documents updated. Note, this new rollover is an alternative to the optional grace period (of up to 2.5 months); an employer cannot offer both a grace period and the rollover.
For more information about this modification, click here. Our team is here to help and serve you. General questions can be answered by our Call Center Representatives toll-free at 888-927-7526. For specific questions, contact our Personal Spending Account specialists, Diane Mottert at extension 6807 or Jason Williams at extension 6806.