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BIG NEWS!! Use It or Lose it is Partially Gone!The IRS today released new guidance modifying the longstanding "use it or lose it" rule for Health FSAs. The new rule allows taxpayers to carryover up to $500 of their unspent FSA funds to the following plan year.
This announcement comes at an important time of the year, as you can now encourage all employees during your open enrollment meetings to elect a Health FSA of at least $500 without worry of losing it.
Please read the IRS guideline to understand the entire ruling by clicking here.