FSA programYesterday, 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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Teri Weber

Teri Weber

Partner at Spring Consulting Group, LLC
Teri Weber, ACI is a Senior Vice President with Spring Consulting Group. She has over 10 years of experience in health and welfare plan strategy, design, pricing, and implementation. She also works with absence management programs, including disability, family medical leave and leave of absence tracking. Her areas of expertise have allowed her to work with diverse employers and vendors to streamline processes and programs to meet the needs of insurers, administrators, employers and employees. Teri is on the Board for the New England Employee Benefits Council (NEEBC) and recently served as lead editor for the Disability Management Employer Coalition’s (DMEC) Return to Work Program Manual. Prior to joining Spring, Teri worked with Watson Wyatt, Buck Consultants and AON Consulting. In addition she was an Account Manager with Health Direct, Inc. Teri earned a BS at the University of Connecticut and a MBA at the University of Massachusetts. She holds an ACI designation and is a licensed broker in the states of MA and CT.