There’s welcome news for workers concerned about losing unused money in their flexible spending account at the end of the year. The US Treasury Department has relaxed the rule on flexible spending accounts (FSAs) allowing participants to carry over $500 in unused funds starting in 2014.
The rule ends a 30 year old policy where participants forfeited unspent account balances at the end of the year.
“We are always looking for ways to provide added flexibility and commonsense solutions to how people pay for their healthcare,” Treasury Secretary Jacob Lew said in a statement.
An estimated 14 million families participate in FSAs. These changes may encourage more employees to use the account to help manage medical costs.
To read the official press release from the U.S. Department of Treasury, click here.