WASHINGTON- If you're worried about losing the unused money in your flexible spending account, you can breathe a sigh of relief. On Thursday, the U.S. Treasury Department announced it's relaxing the year-end rule.
Flexible Spending Accounts (FSAs) are provided by employers for workers to use pre-tax dollars to pay for medical expenses. The kinds of expenses include doctor's fees and prescription drug costs.
The year-end rule requires workers to use the money in their accounts by the end of the year, or forfeit the funds. Companies can now allow employees to carry over up to $500 in unused funds into the next year.