![]() ![]() That adds up to a balance of $4,175 ($1,375 plus $1,375 plus $1,425), but the rules now allow a carry-over of just $570 into 2023. She has so far spent just half the contribution and has $1,425 remaining. In 2022, she contributes the maximum - now $2,850. She again spends half, and rolls over the remaining $1,375 - plus the $1,375 from the prior year - into 2022. In 2021, the worker again contributes the maximum of $2,750. (Under normal rules, the maximum amount for rollover that year would have been $550.) She spends just half but, under the temporary rules, carries over the $1,375 balance into 2021. In the example, a worker contributes the maximum of $2,750 to her F.S.A. (She cautioned that the example was possible but “unlikely,” since most account holders spend more than half their annual election.) Rouleau offered a hypothetical example to illustrate how the more generous carry-over rules could have affected a worker with a Dec. For 2021 into 2022, about a third loosened the rules, he said. Federal data suggest that about 16 million workers contribute to an F.S.A., said Jake Spiegel, research associate with the Employee Benefit Research Institute.įor 2020, about two-thirds of Willis Towers Watson’s clients adopted more generous carry-over provisions into 2021 for health care F.S.A.s and dependent care spending accounts, which let workers set aside money for child care, Mr. Not all employers offered extensions and rollover waivers. It’s unclear how many workers may be affected by the expiration of the expanded F.S.A. 31 - or, if their employer offers a grace period, typically by March 15, 2023. Workers should check their F.S.A., she said, to see if they have cash that must be spent by Dec. Now the more generous rules are expiring, and some workers may be caught off guard, said Rachel Rouleau, chief compliance officer for Health-E Commerce, the parent of, which sells F.S.A.-eligible items. “Employees didn’t have to worry about ‘use it or lose it,’” Mr. The federal government temporarily relaxed the rules in 20, allowing employers to extend spending deadlines by up to a year, or to let workers roll over their entire balance into the next year. But during the height of the pandemic, many people delayed in-person doctor visits and didn’t spend all the money. or to let them carry a few hundred dollars into the next plan year. ![]() Employers already had some leeway to give workers a grace period - a couple of months or so past the deadline - to use the money in their F.S.A. ![]()
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