GREENSBORO, NC -- Use it or lose it. The saying can apply to vacation and sick time at work. And for many of you, it applies to the money you put in your health FSA- flexible spending account.
As of this year, the Treasury Department modified the use it or lose it rule.Now you can carry over $500 of unused money into next year.
Many employers immediately adopted the rule, but not all.
If your employer has added the $500 carry over, they have to delete any grace period during which you could submit new expenses and spend down the balance. So the take away for you is this-- check your year-end balance and make sure that you don't have more than $500 left. Any excess will be lost.
If your employer has not adopted the new $500 dollar carry over, the old advice to spend down the account and use the money, is still the rule.
What will you spend it on? Not all items are included.
CVS and Walgreens have listings on their web pages of all FSA products and in stores you'll find an FSA icon.
There's also an FSA store online.