Health flexible spending accounts (FSAs) are about get a bit more flexible. New federal guidance is to permit employers to let workers carry over unused amounts of up to $500 for expenses in the next year while still contributing up to $2,500 a year.
As you know, FSAs are voluntary account-based plans that help millions of Americans use pretax dollars to pay for eligible out-of-pocket health care expenses like prescription drugs, co-pays, and vision and dental costs. Unfortunately, you can’t yet use these pre-tax dollars at a “cash-only” clinic. That said, this is still positive health care news and definitely worth sharing.