The Government Loosens Flexible Spending Account Rules

May 15, 2020

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The Internal Revenue Service made some more rule changes this week to your flexible spending account (FSA).  Now you can make mid-year changes on the contributions to your account by either increasing, decreasing or suspending the amount of money placed in the account. The new IRS guidance for flexible spending accounts allow employees to now roll over $550 into the next plan year, an increase of $50. Another big change is workers will be allowed to enroll in their employer’s health plan outside of the typical open enrollment season. This change enables workers to quickly get themselves and their family on their company’s plan if they’ve previously been covered by a spouse who’s lost their job. These changes are temporary and only effective until December 31, 2020. It is also up to your employer on when they will allow you to make these changes.  For guidance, contact your human resources department.

SOURCE: Market Watch

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