Flexible Spending Account Extension
Profit Ability Article Highlight

Good news for employers and employees using Flexible Spending Accounts (FSAs). The IRS has made some changes to its "use it or lose it" rule for FSAs. Before the change, the money you did not spend for medical or dependent care costs was lost at the end of the year. Since then, the IRS has granted permission for employers to extend the spending deadline a full two and a half months after the close of the plan's year (extended to March 15 for calendar-year-end FSA plans). These benefits are not automatic. It is necessary for your company to make amendments to its FSA plan documents to enable employees to take advantage of the extra time. If you need help in making the necessary changes to your company's FSA plan documents, please contact our offices as soon as possible.

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