06 | 6 | 2005
IRS Eases "Use-It-Or-Lose It" Rule
The IRS recently allowed employers who sponsor Flexible Spending Arrangement (FSAs) to extend the deadline for reimbursement of health and dependent care expenses up to 2 ½ months after the end of the plan year. Under the old rule, an employee would forfeit any funds not spent by year end. Click here to view IRS Notice 2005-42 which provides the details.