Recently, the Treasury Department announced it will allow employees enrolled in flexible spending accounts to roll over $500 of their balance into the next plan year. Although its a little late to adopt the new rule to allow rollovers into 2014 its not too early to think about what youll do to allow rollovers into 2015. Surveys show employers are open to allowing rollovers next year; we suggest plan sponsors think twice.
We have two main reasons for suggesting employers pause before they push the FSA rollover button.
