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Carryover Basis Healthcare

Verrill

Consolidated Appropriations Act of 2021 Includes Flexible Spending Account Relief

Verrill on

The Consolidated Appropriations Act of 2021 (the “Act”) was signed into law on December 27, 2020. Buried within its 5,593 pages is some welcome flexibility relating to 2020 and 2021 health care and dependent care Flexible...more

Patterson Belknap Webb & Tyler LLP

New Carryover Option for Health Flexible Spending Arrangements

Recent guidance from the IRS modifies the long-standing “use or lose it” rule under a health flexible spending arrangement (“Health FSA”) to permit such arrangements to offer participants the opportunity to carryover up to...more

Poyner Spruill LLP

IRS Modifies FSA Use-or-Lose Rule

Poyner Spruill LLP on

The IRS recently modified the “use-it-or-lose-it” rule for healthcare flexible spending accounts (FSAs) to permit a limited carryover of unspent funds from one plan year to the next. Effective immediately, plan sponsors may...more

King & Spalding

IRS Modifies Health Flexible Spending Account "Use It or Lose It" Rule: $500 Carryover Now Permitted

King & Spalding on

Employees generally may not use contributions made to a health flexible spending account ("health FSA") in one plan year to purchase a benefit that will be provided in a subsequent plan year. This "use it or lose it" rule...more

Saul Ewing Arnstein & Lehr LLP

The Benefits Game: New Carryover Option for Health Flexible Spending Accounts – A Change in The “Use It or Lose It Rule”

Some cafeteria plans already contain optional grace period provisions that modify the strict “use it or lose it” rules for Health Flexible Spending Accounts (“Health FSA” or “FSA”). These grace period provisions permit FSA...more

Stinson - Benefits Notes Blog

IRS Loosens Use It Or Lose It Rule

As employers who sponsor cafeteria plans know, flexible spending accounts (FSAs) under those plans have had a “use it or lose it” rule. Under that rule, employees who participate in the spending accounts must make elections...more

Proskauer Rose LLP

IRS Changes Health FSA "Use-or-Lose" Rule; Clarifies Transition Relief for 2013-14

Proskauer Rose LLP on

On October 31, 2013, the Internal Revenue Service (IRS) released Notice 2013-71 (Notice), which modifies the "use or lose" rule for health flexible spending accounts (health FSAs) to allow a $500 annual carryover of unused...more

McCarter & English, LLP

IRS Modifies Health FSA "Use or Lose" Rule

McCarter & English, LLP on

On October 31, the IRS issued Notice 2013-71, modifying the long-standing “use or lose” rule for health flexible spending arrangements (FSAs). Under the new rule, employers may permit health FSA participants to carry over up...more

Cozen O'Connor

Use-It-or-Lose-It Rule Modified for Health Care FSAs

Cozen O'Connor on

The IRS has issued IRS Notice 2013-71, allowing limited carry-over of amounts in employees’ flex plan accounts to the following plan year. Under the guidance employers may permit participants to carry over up to $500 of...more

Wilson Sonsini Goodrich & Rosati

IRS Modifies "Use It or Lose It" Rule for Health Flexible Spending Arrangements

The Internal Revenue Service (IRS) recently issued guidance modifying the longstanding "use it or lose it" rule for health flexible spending arrangements (health FSAs). Under the notice, employers that sponsor health FSA...more

Pillsbury Winthrop Shaw Pittman LLP

IRS Relaxes Use-or-Lose Rule for Health FSAs

On October 31, 2013, the Internal Revenue Service (“IRS”) issued guidance relaxing the Use-or-Lose Rule applicable to Health FSAs under employers’ cafeteria plans. Now an employer may amend its cafeteria plan to permit plan...more

Davis Wright Tremaine LLP

New Health FSA Carryover Rule Poses Tough Choices for Plan Sponsors

The IRS has announced new, long-requested relief from the “use it or lose it” rule that will allow health flexible spending account (FSA) participants to carry over up to $500 of unused contributions to the next plan year if...more

Akerman LLP - Health Law Rx

Health Flexible Spending Accounts – Modification Of "Use It Or Lose It" Rule

Many employers offer health flexible spending account arrangements ("Health FSAs") through cafeteria plans to their employees. Historically, Health FSAs have been subject to a "use it or lose it" requirement, meaning that...more

Sherman & Howard L.L.C.

IRS Relaxes Use-It-Or-Lose-It Rule for Health Flexible Spending Accounts

On October 31, 2013, the Internal Revenue Service (the “IRS”) issued Notice 2013-71, which relaxes (but does not eliminate) the “use-it-or-lose-it” rule for health flexible spending accounts (“Health FSAs”) under Code Section...more

Epstein Becker & Green

IRS Chips Away at the FSA "Use-or-Lose" Rule

Epstein Becker & Green on

Health care flexible spending accounts ("FSAs") established pursuant to a cafeteria plan under Section 125 of the Internal Revenue Code of 1986, as amended, have long permitted employees to make pre-tax salary contributions...more

Ballard Spahr LLP

New IRS Guidance Modifies the ‘Use-It-or-Lose-It’ Rules for Health Flexible Spending Accounts

Ballard Spahr LLP on

The Internal Revenue Service will now allow an employer-sponsored health flexible spending account (FSA) program to permit the carryover of up to $500 in unused health FSA funds from one year to the next. ...more

Dickinson Wright

IRS Announces Modification To “Use-It-Or-Lose-It” Rule For Health Care Flexible Spending Accounts

Dickinson Wright on

On October 31, 2013, the Internal Revenue Service (“IRS”) announced a modification to the “use-it-or-lose-it” rule that applies to health care Flexible Spending Arrangements (“FSAs”) under a cafeteria plan. Under the use...more

Bradley Arant Boult Cummings LLP

IRS Announces New Health FSA Carryover and 2014 Benefit Plan Limits

The U.S. Treasury Department and the Internal Revenue Service (IRS) have announced updated guidance permitting carryover of up to $500 of unused health flexible spending account (FSA) balances at the end of a plan year....more

Best Best & Krieger LLP

Employers May Allow Unused Amounts in Health FSAs to be Carried Forward for An Entire Year

IRS Guidance Provides An Alternative to the Current “Grace Period Rule” - The Internal Revenue Service recently released Notice 2013-71, which provides an alternative to the Grace Period Rule for health flexible...more

Eversheds Sutherland (US) LLP

Legal Alert: IRS Modifies “Use-It-Or-Lose-It” Rule for Health FSAs

In Notice 2013-71 (Notice), the Internal Revenue Service (IRS) relaxed its longstanding “use-it-or-lose-it” rule for health flexible spending accounts (Health FSAs). Employees may now be permitted to carry over up to $500 of...more

FordHarrison

IRS Modifies "Use It Or Lose It" Rule For Health Flexible Spending Arrangements

FordHarrison on

Summary: On October 31, 2013, the Internal Revenue Service (IRS) issued Notice 2013 -71 (the "Notice"), which made two significant changes affecting the administration of cafeteria plans under section 125 of the Internal...more

McNees Wallace & Nurick LLC

New Rule For Flexible Spending Arrangements: "Use It Or Lose (Some Of) It"

Flexible spending arrangements, or FSAs, have gained popularity among employers over the past fifteen years. Today, approximately 14 million families participate in these benefit plans. ...more

McDermott Will & Emery

Modification of “Use It or Lose It” Rule for Health Flexible Spending Arrangements

McDermott Will & Emery on

The Internal Revenue Service recently issued new guidance modifying the “use it or lose it” rule applicable to health flexible spending arrangements (FSAs) to allow carryover of certain unused health FSA amounts into the next...more

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