Compliance May 12, 2004

House Passes FSA Rollover Measure

May 12, 2004 (PLANSPONSOR.com) - The U.S. House of Representatives has passed legislation allowing employees to roll over Flexible Spending Account (FSA) assets from year to year.
Reported by

>H.R. 4279.   amends the Internal Revenue Code to permit up to $500 in an FSA to be carried over from year to year.   Additionally, the measure will allow up to $500 in an FSA to be contributed to a health savings account (HSA).

>In response, the American Benefits Council (ABC) praised the House for passing the measure. “This legislation will encourage more employees to use health FSAs and further advance the goal of providing employees with more choice and more responsibility in health care decisions.  Many employees cite fear of losing their unspent FSA money at the end of the year as a major reason why they elect not to participate in an FSA,” said ABC President James Klein.

A copy of the measure is available here .

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