Treasury Department Modifies Cafeteria Plan Rules

The Treasury Department and the Internal Revenue Service recently issued a fact sheet stating that:

The U.S. Department of the Treasury and the IRS today issued a notice modifying the longstanding “use-or-lose” rule for health flexible spending arrangements (FSAs). For the first time, at the plan sponsor’s option, employees participating in health FSAs will be allowed to carry over – instead of forfeiting – up to $500 of unused amounts remaining at year-end."

For a copy of the Fact Sheet, click here. 

For a copy of the modification notice, click here.