Although employer adoption of the new flexible spending account rollover allowance is low, employee engagement with flexible spending accounts is growing for employers who have adopted it. Benefit advisers can encourage employer adoption of the FSA rollover through increased education and communication.

In October 2013, the U.S. Department of Treasury announced a modification to its so-called FSA “use-it-or-lose-it” provision, allowing a rollover of up to $500 of unused FSA funds at the end of the plan year. Previously, unused employee FSA contributions were forfeited to the employer at the end of the plan year or grace period.

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