Before there were HDHPs (High Deductible Health Plans) and HSAs (Health Savings Accounts), the only way to pay for out-of-pocket medical expenses in pre-tax dollars was through a “Cafeteria Plan” – a special tax provision of IRC Section 125 sometimes referred to as a Flexible Spending Account or FSA. If you’ve been offered an opportunity to participate, this may be your best choice.
Tag: FSA
IRS Announces Change to the“Use It or Lose It” Rule for FSAs
Amend Your Cafeteria Plan Now To Allow for a $500 Rollover The IRS has announced that Cafeteria Plans (also known as 125 Plans, FSAs and Flexible Spending Accounts) can permit up to $500 to be “rolled over” into the following year – softening the “use it or lose it” rule that had been the hallmark …Read More