• Alternative to Use-It or Lose-It
  • November 27, 2013
  • Law Firm: Smith Haughey Rice Roegge P.C. - Grand Rapids Office
  • A Health Flexible Spending Account (“FSA”) provided under an employer’s §125 plan allows participants to make pre-tax contributions to pay for qualified health expenses, which are paid by or reimbursed to them under the FSA on a tax free basis. Until October 31, 2013, however, there was one major drawback without alternative: namely, all FSA contributions not used by a participant by the end of the plan year were forfeited by the participant under the Internal Revenue Code’s “use it or lose it” rules.