skip to Main Content
  • February 18, 2014

IRS Changes Health FSA “Use or Lose” Rule

On October 31, 2013, the Internal Revenue Service (IRS) released Notice 2013-71 (Notice), which modifies the “use or lose” rule for health flexible spending accounts (Health FSAs).

Flexible spending accounts (FSAs) are popular benefits offered by many employers as part of their employee’s health-care package.  Health FSAs are accounts that allow employers to reimburse employees for qualifying out-of-pocket medical expenses, such as deductibles and co-pays, on a tax-free basis.  The account must be set up according to a written plan that meets both statutory and IRS requirements.

Read More
Back To Top