Yesterday, the U.S. Treasury Department made a startling announcement that will change the perception of flexible savings account (FSA) programs significantly and makes them more appealing to employers and employees.
The ruling relaxes FSA regulations by allowing an employee to carry-over up to $500 of unused program funds to the following year but does not change the $2,500 maximum medical contribution limit. Currently, employees enrolled in an FSA program must use the funds in their account by the end of the calendar year or else they lose the balance.
Historically, employees have been reluctant to participate in FSA benefits for the fear or losing unspent funds. Now that risk is minimized with this recent announcement.
If you would like to explore adding or modifying your FSA program or would like to discuss other topics pertaining to your employee benefits package, please contact Spring. Our team of consultants and brokers will be able to guide you through the process and help you develop a customized employee benefits package to fit your needs.
Image credit: Ken Teegardin via flickr
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