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FSA “Use It Or Lose It” Rule

May 11, 2017

Home // News & Updates // FSA “Use It Or Lose It” Rule

Health FSAs are subject to a “use-it-or-lose-it” rule, meaning that unused contributions remaining as of the end of the plan year must be forfeited. There is one exception to the rule that allows cafeteria plans to permit an employee to use amounts remaining from the previous year to pay expenses incurred for certain qualified benefits during a grace period of up to 2 months and 15 days immediately following the end of the plan year.

Learn more about modifying the FSA “Use It Or Lose It” Rule in this PDF.